Oil prices spike to US$59.62 a barrel

21-Mar-07

Amid expectations that the weekly U.S. oil inventory report could show a fall in domestic supplies of gasoline and distillates such as heating oil, oil prices rose in Asian trading on Wednesday. Traders anticipate an increase in gasoline demand during the U.S. summer driving season- still two months away. This coupled with low stocks amid refinery outages in the United States – (about 6% fall in inventories since early February) have caused gasoline demand and subsequently prices to rise. Light, sweet crude for May delivery rose to US$59.62 a barrel in Asian electronic trading on the New York Mercantile Exchange midmorning in Singapore. The report is expected to show a build of 1.4 million barrels in crude oil stocks, and a decline in gasoline inventories by 1.6 million barrels and distillate supplies by 1.1 million barrels.