Saturday, May 01, 2010

Brent jumps to $87

SHOOT: We've had a little holiday from high oil prices. Now that holiday, sad to say, is over for a while.
clipped from

NEW YORK (AP) -- Oil prices climbed above $86 Friday as the government reported the economy expanded in the first quarter and on growing concern that an oil spill in the Gulf of Mexico will affect supply.

The disadvantage for the energy sector Friday continued to be the huge oil spill in the Gulf of Mexico. About 5,000 barrels of oil per day are leaking from the seabed where the drill ship Deepwater Horizon exploded and sank. A giant slick is beginning to wash ashore along the Gulf Coast.

JP Morgan analysts wrote in a note to investors that the spill raises worries about supply. "Given the rich concentration of both offshore upstream assets and refining and petrochemical plants along the Gulf Coast, markets are increasingly concerned about the potential for restriction of vessel movements to tighten crude and product markets."

In London, Brent crude rose 54 cents to settle at $87.44 per barrel on the ICE futures exchange.

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