Oil prices rise past $72 in Asian trade
Oil prices climbed past $72 in Asian trade on Wednesday as the market focussed on the prospect for tight gasoline (petrol) demand during the North American summer driving season following refinery problems on the Gulf coast, dealers said.
By Agencies |
SINGAPORE: Oil prices climbed past $72 in Asian trade on Wednesday as the market focussed on the prospect for tight gasoline (petrol) demand during the North American summer driving season following refinery problems on the Gulf coast, dealers said.
At New York's main contract, light sweet crude for delivery in August, was at $72.09 per barrel, up 17 cents from $71.92 in late US trade.
Brent North Sea crude for August delivery was flat at $70.98.
"The market is focusing on gasoline inventory in the US which is important for the summer season. Gasoline supply is be very limited even if the US is importing but consumption is not getting less," said Tetsu Emori, chief commodity strategist at Mitsui Bussan Futures in Tokyo.
Despite higher prices, US drivers seem unwilling to curb consumption.
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"The price of gasoline is now $3.50 to $4.00 a gallon, similar to that during the US hurricane season last year, yet drivers is still paying. They will not stop moving. I don't think demand will go down," Emori added.Over the past four weeks, US demand for gasoline has been running 0.9 per cent higher than a year ago, the Department of Energy reported last week.
The department's weekly snapshot of oil inventories was due later on Wednesday. High demand has been mirrored in China, where recent Chinese customs data showed oil demand growth jumped 13.5 per cent in May as refiners boosted output and curbed exports ahead of a domestic price increase.
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