Trading sentiments were mixed for oil prices as global oil prices were within striking range of record highs. On the other hand, traders worried about an IEA warning of an impending supply crunch and further unrest in Nigeria. New York's main oil futures contract, light sweet crude for delivery in August, slipped to US$72.19, from US$73 (its highest level since August 25). In London, Brent North Sea crude for August delivery settled at US$75.78 per barrel.
IEA, in its latest report, states that world oil demand will rise faster than expected to 2012 with expected production lags, leading to a supply crunch. The warning also states that OPEC spare production capacity would shrink to minimal levels by 2012 amid robust economic growth, particularly in Asia and the Middle East.
Besides kidnappings in Nigeria, prices are supported by strong gasoline consumption in the United States, which is facing the peak-demand driving season when many Americans hit the roads for their vacations.
10-Jul-07 
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