LONDON, May 15: World oil prices rose on Tuesday on concerns over tight supplies, amid unrest in major oil exporter Nigeria and despite forecasts of rising motor fuel reserves in the United States, dealers said.
Against this background, the International Energy Agency (IEA) revealed it plans to ask oil producers’ cartel Opec this week to increase output by the middle of the year to avoid a cut in
oil stocks which could push up prices.
In London, the price of Brent North Sea crude for June delivery gained 62 cents to $67.45 a barrel in electronic deals.
New York's main oil futures contract, light sweet crude for delivery in June, added 59 cents to $63.05 a barrel in US floor trading.
“There's absolutely no arguing the fact that right now, the US gasoline (petrol) situation is as tight as it's been” since 2005, Calyon analyst Mike Wittner said.
Gasoline stockpiles are in focus ahead of the peak-demand season, which starts at the end of May when many Americans hit the highways for their summer holidays.
The US Department of Energy latest market snapshot of American energy reserves, due on Wednesday, was expected to reveal a climb in gasoline inventories for a second successive week.
But they are beginning to climb only after three months during which they tumbled.
Added to the picture, oil prices won support on Tuesday from concerns about unrest in Nigeria -- the world's sixth biggest producer of crude -- where output has been slashed by about one quarter owing to attacks on its energy facilities.—AFP
