Oil prices spiked on Wednesday and hover around US$60 a barrel for the first time this year. The price of a barrel of crude oil trading for delivery in April rose buy US$1.22 to US$60.07. This is the highest price recorded this year mainly triggered by a series of closings at oil fields and refineries that have affected supplies. This has raised concerns that U.S. oil and gasoline supplies, which until recently had appeared to be in fairly good shape, are set to become tighter.
A combination of strong demand worldwide and tight supplies will likely continue to put pressure on oil prices in coming months and oil prices could possibly head back toward the $70 level. Political issues also contributed to the higher oil prices. OPEC member Iran vowed Wednesday to press on with its nuclear fuel program, ignoring a U.N. deadline to freeze uranium enrichment or face broader sanctions. Although the USA does not import oil from Iran, the world's fourth-largest oil producer, there is concern that if sanctions were imposed on that nation, there would be less oil on the world market.
22-Feb-07 
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