News of the death of Saudi Arabia's King Fahd along with fears of refinery problems in a tight market have pushed world oil prices over US$ 62. The price of New York's benchmark light sweet crude for September delivery rose to US$62.30 per barrel closing one dollar more than Friday's closing. In London, the price of Brent North Sea crude oil for delivery in September hit a record high of US$60.98 a barrel before settling at US$60.44.
Problems are also anticipated in Iran, as the oil-rich Islamic republic prepares to flout European and US objections by resuming uranium conversion. However, factors indicate that more than King Fahd's death, the market seems troubled by new disruptions to already tight oil supplies, given fears that refineries will struggle to produce enough heating fuel in time for the northern hemisphere winter. An ExxonMobil refinery in USA reported technical problems, undermining its production capacity of 245,000 bpd. BP's biggest Texan refinery has been hit by a fire last Thursday, and the Schiehallion oil platform off the West Shetland Islands remained shut following a fire there last Friday. The Shetlands, which form part of Britain, are located more than 300 miles (480 kms) north of Edinburgh.
02-Aug-05 
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