Oil prices dip, but still above US$66

16-Aug-05

Oil prices dipped on profit taking as US refinery production appeared to come back on line, but still hold above US$66 per barrel. New York's main contract, light sweet crude for delivery in September traded at US$66.53 per barrel. Brent North Sea crude oil for delivery in September dipped to US$66.20 per barrel on Monday. New York futures have rocketed by more than 160% since August 2002, when they stood at just US$25 a barrel. They have jumped by at least 60% since August 2004. However, adjusted for inflation, they remain below levels reached in the wake of the 1979 Iranian revolution when prices surged over US$80 a barrel in today's money. However, worries persist over tight US gasoline supplies. The last 4 weeks have seen gasoline demand 1.4% higher than for the same period in 2004, while gasoline reserves stood 2% lower. With indications that high prices have so far not had an effect on US economic growth, the market is now targeting the US$70 per barrel level.