Oil prices spike higher after explosion on US warship

Published October 12th, 2000 - 02:00 GMT

The price of oil jumped sharply on Thursday amid market nervousness over an explosion in the port of Aden which rocked a US navy warship and caused fatalities, dealers said.  

 

The Brent North Sea benchmark crude spiked by more than a dollar to 32.82 dollars a barrel in midafternoon trading here following the incident in which an inflatable raft rammed a US destroyer and triggered an explosion which killed at least four sailors. 

 

Though the cause of the incident was not immediately clear, analysts said it came at an extremely inauspicious moment with the crisis escalating in Israel and Palestine. 

 

"It's a function of the terrorist attack on the US warship in Aden," said Salomon Smith Barney oil analyst Peter Gignoux. “With a symbolic attack on a US military target, the fear is that you have an aggressive terrorist presence," Gignoux said. "This, combined with level of uncertainty in Israel and Palestine, was the last thing you needed." – (AFP) 

 

© Agence France Presse 2000 

© 2000 Mena Report (www.menareport.com)

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