Under the strain of tight supplies and geopolitical tensions on one hand and strong demand on the other, oil and gasoline prices climbed higher on Thursday and are estimated to continue their rise in the near future.
The price of a barrel of crude oil trading for delivery in May rose for the eighth-consecutive trading day to US$66.03.
Demand for gasoline has seen robust growth in the USA and is at the highest on record for this time of year. A strong economy with a low unemployment rate has meant that people can afford to drive more, leading to increased demand for oil.
The week-long dispute between Iran and Britain over 15 British sailors and marines in Iranian custody has renewed concern that tensions with Iran will lead to reduced oil supplies. Iran, which has been in a dispute with the U.S. and other countries over its nuclear program, detained the crew March 23 in the Persian Gulf, claiming it was in Iranian waters. Although the U.S. does not import oil from Iran, there is concern that if sanctions were imposed on that nation, there would be less oil on the world market. Even if the situation in Iran were to be resolved, oil prices would only fall a few dollars.
30-Mar-07 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}