Oil Climbs Above $99, Gasoline Touches Record, on OPEC Outlook

[anant1a]

Oil Climbs Above $99, Gasoline Touches Record, on OPEC Outlook

By Mark Shenk

Feb. 19 () -- Crude oil advanced to a six-week high above $99 a barrel in New York, and gasoline futures rose to a record, on speculation OPEC will curb production.

The Organization of Petroleum Exporting Countries may cut output when it meets March 5 as winter heating demand wanes, the group's president suggested last week. Gasoline surged after an explosion yesterday shut Alon USA Energy Inc.'s Big Spring, Texas, refinery.

``The growing possibility of an OPEC output cut is countering any bearish pressure that comes from the weakening economy,'' said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. ``There's a big reaction to any refinery outage now because it's maintenance season.''

Crude oil for March delivery rose $3.50, or 3.7 percent, to $99 a barrel at 1:09 p.m. on the New York Mercantile Exchange. The futures reached $99.08, the highest since Jan. 4. Prices are up 71 percent from a year ago.

Gasoline for March delivery climbed 10.81 cents, or 4.3 percent, to $2.6019 a gallon in New York. Futures touched $2.6084, a record for gasoline to be blended with ethanol, known as RBOB, which began trading in October 2005.

Oil in New York has dropped 1.1 percent since touching a record $100.09 a barrel on Jan. 3 amid speculation demand will drop as global economies slow.

 

[anant1a]

World oil prices scale record high


SINGAPORE: World oil prices continue to scale new heights on concerns over supplies and created a new record of 101.32 dollars a barrel on Thursday.

Main oil futures contract in New York touched the all-time peak in electronic trading for light sweet crude for delivery in March. In morning trade, the contract for April delivery, which took over, was trading at 99.90 dollars a barrel, up 20 cents from the previous day.

Brent North Sea crude for April delivery rose four cents to 98.46 dollars a barrel. Analysts believed that the oil market would be heavily influenced by any decision of the OPEC on output levels at its next meeting on March 5.

OPEC ministers kept the official daily output ceiling at 29.67 million barrels of oil at an emergency meeting on February 1, resisting calls from US President George W. Bush to increase supplies to help bring down prices.

However, the market is rife with speculation OPEC, which supplies about 40 percent of the world's oil, would keep or even decide to cut production.

An ongoing row between US energy giant Exxon Mobil and Latin American crude oil exporter Venezuela is also adding jitters among investors, analysts said.

The legal battle relates to Exxon Mobil’s bid to secure compensation after Venezuela's government nationalized key oil fields in the Orinoco basin, including two Exxon Mobil operations.

 

[rohini_gupta1412]

how much its impact on india & other developing economy. because developing economies r on their way to growth& sucess. this hike will dampen their growth. we need to analyse its real impact on india.