LONDON, July 5: World oil prices climbed further on Tuesday, fuelled by concerns that refineries may struggle to meet demand during the fourth quarter and on fears that severe weather could disrupt US oil production.
New York’s main contract, light sweet crude for delivery in August, soared $1.20 to $59.95 per barrel in early deals.
There was no trading in the contract on Monday owing to the Independence Day public holiday in the United States.
It had surged $2.25 to close at $58.75 per barrel on Friday on forecasts of a jump in petrol, or gasoline, consumption. Many Americans take to their cars for the holiday weekend, sending petrol demand soaring.
In London, the price of Brent North Sea crude oil for delivery in August gained 55 cents to $58.49 per barrel on Tuesday.
“The market’s upside follow through on the heels of Friday’s dramatic advance remains heavily influenced by distillate supply concerns,” said US-based Prudential Financial analyst Jim Ritterbusch.
Meanwhile, supply worries were exacerbated by fears that severe weather could disrupt US oil production.—AFP
