Oil Back Above $65
Crude oil jumped more than $1 on Thursday, passing the $65 mark on lingering concerns about geopolitical unrest instigated by Iran and by slipping U.S. petroleum supplies.
On the New York Mercantile Exchange around midday, crude climbed $1.13 cents, to $65.21.
Gasoline inventories remain in the upper part of the typical range for this time of year, but U.S. gasoline demand averaged 9.2 million barrels last week, up 1.6% from last year, the Energy Information Administration said Wednesday.
The mounting tension between Iran and the United Kingdom over the seizure of British naval personnel drove crude oil prices up this week to levels not seen since September. As an illustration of just how skittish the international markets are over a possible military showdown, oil prices jumped $5, to $68 a barrel, in after-hours trading on Tuesday amid false rumors that Iran had fired a missile on a U.S. ship in the Persian Gulf. (See: "Iran Standoff Plagues Oil Prices" )
Prices quickly settled back, but strong British rhetoric and threats that the issue may be taken to the U. N. Security Council kept prices well above the Tuesday close.
In a six-day face-off, the U.K. has sparred with Iran over the release of its personnel, who had boarded an Indian-flagged ship in what London insists were Iraqi waters. Iran, by contrast, claims the British sailors and marines had strayed into its territory.
Also providing support to prices was the weekly petroleum supplies report from the United States. The Energy Department reported Wednesday that crude oil inventories slipped by 900,000 barrels last week to 328.4 million barrels. Stocks of gasoline and distillate fuel, which include heating oil and diesel fuel, also fell.
Most of the large oil companies posted gains in Thursday's session.
Exxon Mobil (nyse: XOM - news - people ) increased 39 cents, or 0.5%, to $75.95, while shares of Chevron (nyse: CVX - news - people ) increased 71 cents, or 1%, to $74.79.
American depository receipts of BP (nyse: BP - news - people ) gained 94 cents, or $1.5%, to $65.64 on the New York Stock Exchange.
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Comments
I love oil!
Posted by: diane | March 30, 2007 03:17 PM
Oil is king.
Posted by: Rick | April 3, 2007 10:13 AM