Oil prices pressed higher this week, over $US60 a barrel with raised concerns of a potential cold snap in the USA even though it is unusually warm
weather at present. Oil prices reached a record high of $US70.85 earlier this year after hurricane Katrina threatened oil wells in the gulf of Mexico.
Forecasters are saying that unless Saudi Arabia invests in oil production, prices will rise by 50 percent before 2030.
New York's main contract, light sweet crude for delivery in December, jumped $US2.03 to close at $US61.78 dollars a barrel.
In London, the price of Brent North Sea crude for December delivery surged 2.14 dollars to 60.52 dollars a barrel.
"The market is still supported by concerns that we may see a very cold winter in the United States and Europe," Sucden analyst Sam Tilley said.
He was commenting a day after the US Department of Energy said stockpiles of distillates, including heating oil and diesel, fell by 200,000 barrels in
the week to October 28. Analysts had, however, forecast a larger drop of 800,000 barrels.
According to the DoE data, US crude stocks rose by 2.7 million barrels last week, well above the normal range for this time of year and above
forecasts of a 2.2-million-barrel build.
Gasoline, or petrol, reserves climbed by 1.0 million barrels, overshooting market expectations of a 600,000-barrel gain.
"The crude oil market continues to rebuff attempts to push prices below 60 dollars per barrel," Barclays Capital analyst Kevin Norrish said.
"It is not a problem of availability of reserves or capital," she said.
"We need to be sure that the increase in production will be high enough and a sustained production capacity increase policy is in place. That will
need sustained political will."
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This comes less than a week after the news that oil companies made massive profits over the last three months. Who are they kidding, how can we make
the prices jump today. Massive profits while people were suffering an enduring purse emptying cues at the pumps.
Wheres the checks in place, why is this allowed to be happening. These companies just released massive massive billion dollar profits, yet say the
prices of fuel has to rise. Oh no we can't cut into our profits, we will make the people pay and raise the profits more and more, profit off our
I thought there was federal reserves to stop this happening. These record profits did not make news headlines as much as they should of. It was
quietly said and then almost buried under other matters straight away.
Exxon And Shell Announce Record Profits
[edit on 4-11-2005 by Mayet]