Wednesday's US data indicated that overall crude stocks had fallen by 2.3 million barrels in line with expectations, but at 317.8 million barrels they are still above the upper end of the average range for this time of year. As per the report, US petrol inventories fell last week by 2.1 million barrels with demand 2.4% higher than a year ago. As dealers anticipated an increase in demand from US refiners who are trying to keep pace with strong summer petrol consumption, oil prices briefly flit over US$60 a barrel on Thursday. US light sweet crude for September delivery rose to US$59.94 a barrel after hitting a high of US$60.15, and London Brent rose to US$58.76. The rise was based on expectations the nation's refiners would increase their capacity rates to meet robust US petrol demand and maintain distillate stockpiles ahead of winter.
Opec, which is pumping at the highest level for 25 years, has blamed stubbornly high oil prices on refining bottlenecks, rather than an overall shortage of crude.
29-Jul-05 
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