Beijing (AFP) March 21, 2011
Chinese Prime Minister Wen Jiabao expressed shock at rising oil prices Monday and blamed loose monetary policies by "some countries" as well as political unrest in the Middle East for the spike.
"I (was) very surprised and shocked when I saw the international price of oil has exceeded $100 a barrel," Wen told a group of visiting business leaders.
China needed to better improve its system of oil pricing and make it more "consistent with international practice," he added.
Unrest in the Middle East and loose monetary policies in "some countries" had caused the spike in energy prices, he said.
Chinese leaders have cited a loose US monetary policy for the rise in global commodity prices, saying it has fueled inflation in China and led to a 4.9 percent rise in the nation's consumer price index in February.
Beijing's stability-obsessed policymakers have sought to curb rising prices and ensure that the social unrest sweeping the Middle East and North Africa does not erupt in China.
World oil prices rallied on Monday after Western air strikes were launched on key crude exporter Libya over the weekend with New York's main contract, light sweet crude for delivery in April, adding $1.75 to $102.82 a barrel.
In London morning trade, Brent North Sea crude for May earned $1.43 to $115.36 per barrel.
Speaking at the China Development Forum, Wen further voice optimism over the outlook for economic recovery in the United States and Europe, but urged Washington to further open its high-technology sector to Chinese firms.
"I feel optimistic about the US economy, about the European economy, and the whole world economy," Wen said.
"It won't be long for the US to get back on the track of a strong recovery."
earlier related report
Japan inability to gain full control of the Fukushima nuclear plant amid meltdown fears also contributed to continued high volatility in the market, analysts said.
New York's main West Texas Intermediate contract for April ended at $102.33 dollars a barrel, up $1.26 from late Friday.
In London Brent North Sea crude brought $1.03 more at $114.96.
"It's really the continued uncertainty that we are seeing in Libya," said Matt Smith of Summit Energy.
"It was priced in to a certain extent that the supply was going to be offline for a while.
"But the involvement of the UN and Western forces have really caused prices to rally because they think it is going to make the disruption in Libya more protracted that it may have been."
Analysts at JPMorgan said they expected more volatility in a multiple-crisis environment.
"Oil prices continue to see-saw with developments in the Middle East and Japan. Potential for short-term disruptions as well as low-probability but high-impact events is driving the market," they said.
The intervention by French, American and British forces in Libya -- which exported some 1.2 million barrels a day prior to the uprising against Moamer Kadhafi -- has hobbled loyalist forces but offers little hint about how the situation will be resolved.
"A stalemate at current positions leaves most of the oil export ports in the hands of the Kadhafi regime," noted PetroMatrix analyst Olivier Jakob in Zurich.
"Oil prices have gone up due to military attacks in Libya from UN forces," said Victor Shum, an analyst at energy consultants Purvin and Gertz.
"More oil installations could be damaged due to collateral damage and internal sabotage," Shum told AFP.
Combined with unrest elsewhere, he said, "oil supply disruption is going to support prices in its triple digits."
In London, the Centre for Global Energy Studies warned that the tightening market is in danger of repeating the 2008 price surge when crude futures topped $147 a barrel.
It said the oil market needed "a clear unambiguous signal" from the OPEC cartel that the lost Libyan production would be replaced.
Share This Article With Planet Earth
Powering The World in the 21st Century at Energy-Daily.com
Oil prices fall after Libya declares cease-fire
New York (AFP) March 18, 2011
World oil prices slipped Friday in volatile trade after major crude exporter Libya declared a cease-fire with rebels, easing fears about possible damage to its energy facilities. New York's main contract, light sweet crude for April, settled at $101.07 a barrel, down 35 cents from Thursday's market close. In London, Brent North Sea crude for delivery in May shed 97 cents to close at $113 ... read more
Risk of major power blackouts in Japan: minister|
Power outages begin in Tokyo area
Quake-hit Japan delays planned power cuts
Former Dutch minister to head IEA
China's Wen shocked at rising oil prices
First Iraq war begs questions for Libya 20 years on
South Korea clinches foreign energy deals
Natural gas to gain from nuclear crisis
K-State Research Channels Powerful Kansas Wind To Keep Electricity Running
GL Garrad Hassan Announces The WindHelm Portfolio Manager
American Electric Technologies Announces Deployment With Emergya Wind Technologies
GL Garrad Hassan Delivers Wind Map Of Lebanon
Wind And Solar Can Reliably Supply 25 Percent Of Oahu's Electricity Need
Brooklyn Bridge Park Receives Solar-Powered Charging Station To Power Electric Vehicles
Cenergy Power Provides Solar Power To J. Marchini Farms
Freya Energy's Unique Large Format Lithium Ion Cells And Batteries
Bulgaria prepares 'stress test' at Kozloduy nuclear plant
How quickly can Germany ditch nuclear?
Japan disaster hikes Swedes' opposition to nuclear
EU wants neighbours to match nuclear 'stress tests'
Maquipucuna Cloud Forest In Ecuador Yields New Species (Of Yeast)
Can Biochar Help Suppress Greenhouse Gases
CO2 Emissions From Biomass Combustion
Researchers To Turn Waste Into Wealth
What Future for Chang'e-2
China setting up new rocket production base
China's Tiangong-1 To Be Launched By Modified Long March II-F Rocket
China Expects To Launch Fifth Lunar Probe Chang'e-5 In 2017
Northern Peatlands A Misunderstood Player In Climate Change
Ancient Hhyperthermals A Guide To Anticipated Climate Changes
The Zombie Invaders
Climate-Related Disasters May Provide Opportunities For Some Rural Poor
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|