Oil Rises as Supply Fears Outweigh Economic Concern
March 27, 2012 by Gold Editor
Author: Reuters Posted: March 27, 2012
Oil rose for a third straight session on Tuesday as fresh concerns about supplies outweighed worries about the global economy.
Markets have been gripped by concerns about supply losses from Syria, South Sudan and Yemen -- as well as the potential disruption of exports from OPEC producer Iran -- that have driven prices up more than 15 percent this year despite ongoing worries about the global economy and fuel demand.
South Sudan said the Sudanese air force bombed key oil fields in a cross-border raid on Tuesday, adding to global production fears.
Bolstering support for Brent, Total (TOTF.PA) shut down oil and gas production from its North Sea Elgin platform on Sunday following a gas leak. Total's Elgin-Franklin site has been providing about 60,000 barrels per day to Forties, one of the largest crude streams underpinning Brent futures, two oil trading sources said.
Prices came off highs in early U.S. trade after data showing the Conference Board's U.S. consumer confidence index dipped to 70.2 in March from 71.6 in February.