Oil prices rise above $72 a barrel
(AP)
Updated: 2006-06-28 19:13
Crude oil prices rose above $72 a barrel Wednesday on anticipated strong
gasoline demand over the July Fourth weekend and Iran's continued resistance to
shut down its nuclear enrichment program.
Traders also were anticipating the U.S. government's weekly petroleum supply
report to be released later in the day.
"A fall in the gasoline inventories now will be a trigger for a bullish
market," said Tetsu Emori, chief commodities strategist for Mitsui Bussan
Futures in Tokyo. "The U.S. can't produce as much gasoline as they want to, and
supply and demand is getting tighter."
Light, sweet crude for August delivery rose 17 cents to $72.09 a barrel in
electronic trading on the New York Mercantile Exchange.
In London, Brent crude futures on the ICE Futures exchange climbed 44 cents
to settle at $71.42 a barrel.
Gasoline futures rose 0.15 cents to $2.2000 a gallon after rising almost 2
cents on Tuesday as the shutdown of a key shipping channel near Lake Charles,
La., disrupted crude oil supply to three nearby oil refineries and forced them
to reduce fuel production.
The disruptions came days ahead of the Indendence Day holiday, when gasoline
demand typically peaks as Americans hit the road.
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