Rising oil prices are continue to bother consumers as it is climbing up to new record daily. Galloping oil prices do not seems to recede. Oil prices have raised again a dollar a barrel higher mark amid concerns about supplies in the US.
In the US, light sweet crude mounts $1.07 higher at $65.08 while in London Brent crude raised $1.03 to $69.07. Market experts are worry about the resent upsurge in the prices and said that condition will not improve until political differences will not improve.
Analyst relates resent surge in the oil prices with the BP delayed restarting an oil refinery in Chicago and amid the fear of loosing its Russian rich oil Siberian base.
Apart from the oil rise, US is also worry about its domestic oil inventories, which fell by 2 million barrels, or 0.6%, to 342.2 million barrels in the week to 25 May, the US Energy Department report showed. In such situation, US market is under threat for another price rise.
Apart from the rising prices, gasoline and oil futures rose continued concerns that domestic refineries aren’t producing enough gasoline to meet peak summer driving demand. Analysts had expected a rise of 300,000 barrels, but the major US refineries could not deliver its potential. The Chicago-area refinery has a capacity to process 420,000 barrels of crude oil a day (bpd), but drill around 200,000 bpd.
However, there is some good news as gasoline stocks had risen by 1.3 million barrels to 198 million during the period. But US can not only bank on the foreign supply. Nigerian workers strike and terrorist affecting oil supply already thwart US effort to consolidate prices. Venezuela has already taken a anti American stand, with Iran US is not looking eye to eye on various aspects, which has put both nations on opposite directions.
US Chicago refinery is not able to produce according to its capacity, after it affects hard by the fire. America needs to develop new refineries and better relationships with the oil producing nations.
Image: Fremantleports
Via: BBC
