Oil spikes to US$112, Brent crude hovers near US$125

22-Apr-11

New York's main contract, light sweet crude for delivery in June traded at US$111.9, while Brent North Sea crude settled at US$124.3 on the ICE Futures exchange in London. Oil is estimated to finish the week higher on several counts including an unexpected drop in crude supplies. Stocks in USA fell by 2.32 mln barrels to 357 mln, the first drop since February. Signs of improvement in US economy have stirred speculation that fuel demand may increase. Commencement of rebuilding in Japan post earthquake has propped up hopes of increased demand from Japan.