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Oil prices surge on US gasoline supply concerns
AFP
NEW YORK
Petroleumworld.com 06 30 06
World oil prices jumped by more than a dollar on Thursday as traders worried about weak supplies of motor fuel in the United States during the country's peak-demand driving season.
New York's main contract, light sweet crude for delivery in August, leapt by 1.33 dollars to close at 73.52 dollars per barrel.
In London, Brent North Sea crude for August delivery soared by 1.47 dollars to 72.88 dollars per barrel, after earlier touching 72.98 dollars -- last seen on May 12.
"The rise in prices is related to two factors: demand for gasoline and Iran," said Roger Diwan at PFC Energy.
US data on Wednesday had shown weaker-than-expected gasoline stocks at the beginning of the US summer holiday driving season.
The US Department of Energy (DoE) said Wednesday that US reserves of gasoline (petrol) had fallen by one million barrels to 212.4 million last week.
Analysts' consensus forecast had been for a rise of 450,000 barrels.
The DoE had also said Wednesday that demand for gasoline rose 1.2 percent in the week that ended June 23 from the prior week to 9.54 million barrels per day, matching its record high set in August 2005.
Over the past four weeks, US gasoline demand has run 0.9 percent higher than in the same period a year ago.
Crude oil reserves fell by 3.4 million barrels to 343.7 million over the week ended June 23.
Oil prices have climbed this week, supported by refinery disruption and strong energy demand in the United States and China, as well as jitters over the Iranian nuclear energy crisis.
A package drawn up by the five permanent UN Security Council members -- Britain, China, France, Russia and the United States -- plus Germany promises Iran incentives and multilateral talks if it agrees temporarily to halt uranium enrichment.
Iran had said on Monday that it would use its vast oil resources only as a weapon of last resort in the international dispute.
AFP 29 2045 GMT 06 06
Copyright ©2006 AFP. All Rights Reserved.
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