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Hetco drives up oil price with North Sea move
Business Digest: US trader, part of Hess Corp, takes huge position in market
The American trading group Hetco is reported to have taken control of eight North Sea Forties oil shipments and two of the first three Brent cargoes, pushing London prices to above $98 a barrel.
The move by Hetco, which is part-owned by US oil and gas group Hess Corp, would give them huge influence in the price of oil for immediate delivery.
The reports cite "trading play" as the basis for Hetco's acquisition, and there are rumours that the company might be in the market for more. Hetco now has 30 per cent of the Forties oil that will be loaded next month, and 25 per cent of the London Brent cargoes.
The news has driven Brent crude futures to $98.60 in intra-day trading on Wednesday, although this is still below the $99.20 peak seen last week. Analysts are predicting oil price to grow to over $100 a barrel this year.
Read the full report at the Daily Telegraph. ·
