Oil prices rise to nine month high

15-Jun-07

In its weekly report, the U.S. Energy Department reported that refinery utilization fell last week and that gasoline inventories did not grow. After rising to a 9 month-high on worries about the U.S. refining industry's ability to meet peak summer gasoline demand, Oil prices were unchanged on Friday. Light, sweet crude for July delivery remained at US$67.65 a barrel on the New York Mercantile Exchange, midmorning in Singapore. The contract rose US$1.39 to settle at US$67.65 a barrel Thursday, the first time since September that Nymex crude closed above US$67 a barrel. As per EIA, Refinery utilization, which had been expected to grow by 0.8%, fell 0.4% to 89.2%, the second straight weekly decline. This is a contrast to analyst expectations that refineries should be using 94-95% of their capacity at this time of year. Gasoline inventories were unchanged at 201.5 million barrels for the week ended June 8, the EIA report said. Analysts surveyed by Dow Jones Newswires expected inventories to rise by 2 million barrels. Tensions between the West and Iran, which continues to assert it will never suspend uranium enrichment, coupled by OPEC's refusal to boost production have also augmented the problem.