Crude oil price soared further to touch a high of US$60 per barrel during the trading hours for the second time this week. This has led analysts to speculate that prices may break the US$62 mark going all the way up to about US$80 per barrel. Prices seem to be propelled by supply fears in the face of massive Chinese and US demand. New York's main contract for light sweet crude for delivery in August also advanced to about US$59.90 a barrel in electronic deals on Friday from its close of about US$59.42 on Thursday - A result of supply concerns ahead of the Northern Hemisphere winter.
Prices are hitting record peaks as speculators worry that refineries will struggle to turn enough crude oil into heating fuel to meet Q4 demand. Refining capacity, currently operating in the US at 95%, does not seem sufficient to meet the demands of growing economies, magnifying in the winters. These future concerns seem to weigh more heavily on the market that this weeks' reassuring US inventory report, as well as the end of a threatened strike by Norwegian oil workers this week.
27-Jun-05 
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