A collision between bulls and bears in the crude-oil markets played out last week, which was shortened by the Thanksgiving holiday in the US. As JFI went to press on Wednesday, crude oil in New York was trading at around $83.30 per barrel, after gaining back ground that had been lost earlier in the week. January Brent on the ICE Exchange in London climbed more than $2 to $84.90 at midday. Bearish factors dominated the oil complex in the early part of the week. The case for market bulls was further weakened by new data showing a 1 million b/d build in US crude supplies at a time when most analysts were expecting a stockdraw of around 2 million b/d. But fresh upward momentum came from potential supply disruptions in Nigeria after Shell declared force majeure on loadings of Bonny Light grade after a pipeline leak. The market derived further support from news that the US sent an aircraft carrier to take part in exercises off the Korean peninsula after North Korea lobbed artillery fire into South Korea for the first time in 50 years.
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