Shell's Texas shutdown offers support to crude

OIL prices rose yesterday, supported by a rally in US refined products following news of a problem at a large Texas refinery. Benchmark Brent rose 21 cents to $30.90 per barrel, while US light crude was up 21 cents at $34.47 per barrel.

At the weekend, Shell shut its units at its oil refinery in Deer Park, Texas due to a technical glitch. US product futures rallied and the strength spread into crude contracts.

One trader said that massive fund length still hung over the market.
"People are reluctant to go long, because the funds are so long that if they decide to sell, things could get a bit messy."

A US Commodity Futures Trading Commission report released last week showed non-commercial crude speculators extended net longs to a five-year high of 67,673 in the week to 17 February from 46,979 the week before...

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