IPE Volumes Soar To New Highs
Date 12/11/1999
Traded volumes on the IPE reached a massive 204,139 lots on November 10, beating the previous record set on 8 October this year by more than 20,000 lots. The number of lots traded represents more than 180 million barrels of oil, or nearly two and a half times total daily world oil consumption.
Brent Crude futures set a new individual record, trading 140,722 lots, compared with a previous high of 132,186 lots on 11 May 1999.
he increase in volume accompanied rising prices, which reached their highest level for almost
three years. The prompt Brent Crude futures contract traded up to $24.81/bl last night, its highest
level since 9 January 1997. This price is only 25c/bl away from the post Gulf War high of 25.06/bl traded on 15 October 1995.
Yesterday's price rise followed bullish inventory data from the US Department of Energy, which
showed a substantial draw in stocks of oil products. A statement from Venezuela's Energy and
Mines Minister Ali Rodriguez that Opec would probably have to extend production cuts beyond
March was a further factor tending to boost price levels according to brokers.
Opec production cuts have contributed significantly to a huge price rise this year. Prices are currently more than double the levels of those in January and February.
