Oil prices continue to surge despite unexpected increase in crude supplies

18-Jun-10

Benchmark crude for July delivery rose to US$77.6 on the New York Mercantile Exchange. Oil prices continue to be on an uptrend despite release of data in a government report showing unexpected increase in crude supplies last week by 1.7 million barrels. Analysts were looking for a decline of 1.75 million barrels. Economic indictors in USA indicate that consumers are not doing well, but the industrial economy is doing well, playing a key part in the economic recovery process as output at the nation's factories, mines and utilities rose 1.2% in May. Demand remains unenthusiastic in the US as unemployment rate continues to be persistently high. The report showed continued strong growth for refined products used by factories and truckers.