facebook
twitter
rss
account
search
search
 

Crude oil price sets record high

June 17, 2005 at 4:48 PM   |   Comments

NEW YORK, June 17 (UPI) -- The cost of light,low-sulfur crude oil reached a new high Friday when it closed on the New York Mercantile Exchange at $58.47 per barrel.

Earlier in the session it was even higher as traders worried about tight world refining capacity in an environment where the world's oil cartel is producing at or near capacity.

The old record had been $58.28.

In London, traders bid up the price of comparable crude and also set a record, reaching $57.76 for August delivery, the Wall Street Journal said.

"There are several factors driving prices upward, most notably continued high global demand, constraint on OPEC's surplus production capacity and fears of limited refinery capacity converting heavy crude into light products," said Muhammad-Ali Zainy, senior energy analyst with the Center for Global Energy Studies in London.

"Instability in the Middle East, especially in Iraq and Saudi Arabia, are serious additive factors," Zainy said.

Gasoline futures for July delivery also jumped Friday, selling in New York for $1.6471 per gallon. Heating oil also climbed sharply, changing hands for $1.6518 per gallon.

Meanwhile, natural gas moved up to $7.69 per million Btu.

Topics: Muhammad Ali
© 2005 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
GM recalls 221,000 Cadillacs and Impalas GM recalls 221,000 Cadillacs and Impalas
2
New National Security Cutter delivered to Coast Guard New National Security Cutter delivered to Coast Guard
3
First MT30 engine for Korean Navy frigates passes acceptance tests First MT30 engine for Korean Navy frigates passes acceptance tests
4
Ukraine's State Guard Service receives armored personnel carriers Ukraine's State Guard Service receives armored personnel carriers
5
Navy's Triton surveillance drone flies cross-country Navy's Triton surveillance drone flies cross-country
Trending News
Video
x
Feedback