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Oil prices rise on war fears, low US gasoline stocks
New York, Mar 27: Oil prices have advanced steadily as traders sweated over how long the war in Iraq would last and as the US ran alarmingly low on gasoline (petrol).
New York, Mar 27: Oil prices have advanced steadily as traders sweated over how long the war in Iraq would last and as the US ran alarmingly low on gasoline (petrol).
"Of course, it is still not entirely clear how quickly the war in Iraq is going to proceed towards resolution," said Refco market analyst Marshall Steeves yesterday.
"It is a sideways, news-driven market with respect to the war."
New York's benchmark light sweet crude contract for delivery in may rose 66 cents to $ 28.63 a barrel.
In London, the price of Brent North Sea crude oil for may delivery climbed 47 cents to $ 25.28.
Nerves over the Iraqi war were compounded by news that US stocks of gasoline had drained lower last week.
Separate surveys by the department of energy and the American petroleum institute showed gasoline stocks dropped about one per cent to 1 99.0 million barrels.
The low levels of gasoline raised concerns that refineries would have to boost production quickly.
"With second quarter demand (for gasoline) likely to increase, it is going to be a precarious situation if we don't see a production increase," Steeves said.
US gasoline prices at the pump shot to a record high of 1.719 dollars a gallon of regular gasoline (45.4 cents a litre) on average from 1.63 dollars a month earlier, the American automobile association said last week.
Oil prices had slipped Tuesday as reports of a popular revolt in Basra, sparking hope that US and British forces might escape prolonged urban street fighting in Iraq.
New York's benchmark light sweet crude contract for delivery in may rose 66 cents to $ 28.63 a barrel.
In London, the price of Brent North Sea crude oil for may delivery climbed 47 cents to $ 25.28.
Nerves over the Iraqi war were compounded by news that US stocks of gasoline had drained lower last week.
Separate surveys by the department of energy and the American petroleum institute showed gasoline stocks dropped about one per cent to 1 99.0 million barrels.
The low levels of gasoline raised concerns that refineries would have to boost production quickly.
"With second quarter demand (for gasoline) likely to increase, it is going to be a precarious situation if we don't see a production increase," Steeves said.
US gasoline prices at the pump shot to a record high of 1.719 dollars a gallon of regular gasoline (45.4 cents a litre) on average from 1.63 dollars a month earlier, the American automobile association said last week.
Oil prices had slipped Tuesday as reports of a popular revolt in Basra, sparking hope that US and British forces might escape prolonged urban street fighting in Iraq.
Bureau Report