Crude surpasses $117 amid supply disruptions

Crude oil for May delivery hit an all time high of $117.76 per barrel in intraday trading on the New York Mercantile Exchange (Nymex) today, closing at $117.48/bbl.

ICE Brent hit a new high of $114.65/bbl before settling at a record $114.43

Concerns over strike action at one of Britain’s largest refineries, Grangemouth, and its impact on the Forties pipeline serving a number of North Sea fields concerned traders.

In Nigeria Royal Dutch Shell confirmed that 169,000bpd of capacity had been disabled after an attack by the country’s main militant group on two pipelines.

Analysts also regard the weak US dollar as another key driver enabling crude oil to continue posting fresh highs.

“Under these conditions the $120 mark is just another mark in oil's inexorable march higher,” noted MF Global’s John Kilduff. “We now see area around $125 as our next upside target.”