As supply risks mount in key producing countries, and US gasoline demand continues to be strong limiting gains by rising US energy stockpiles- oil prices continue to rise higher.
April-dated US light crude futures rose to US$61.75, April-dated Brent contracts rose to US$62.18 er barrel.
The US Energy Information Administration said gasoline demand was 2.5% above year-ago levels over the past 4 weeks, propping up prices even as the department reported gains in gasoline and crude stocks for the week to Feb 24. Crude supplies grew by 1.6 mln barrels last week, almost 10% above year-ago levels Gasoline stocks inched up 0.3 mln barrels to stay at their highest levels in 6 years.
Is the phase-out of controversial gasoline additive methyl tertiary butyl ethanol or MTBE helping support prices?
MTBE was introduced to fight pollution but it was found to contaminate water. US authorities have given refiners till May to switch to producing a new gasoline that will be blended with ethanol. These specifications were causing concerns whether refiners will be able to complete the transition in time.
The geo-political front remained tense as Iran shows no signs of compromise in high stakes talks with Russia aimed at allaying fears its nuclear program is a front for a weapons drive. Iran is the world's 4th largest crude producer, exporting some 2.7 mln bpd.
In Nigeria, the world's 8th largest crude exporter, oil giant Chevron shut in 13,000 barrels because of a pipe-line leak. The company could not confirm if the incident was due to sabotage. Almost half a million barrels of production has been off line following attacks by rebels currently holding nine foreign oil men hostage.
02-Mar-06 
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