Crude Oil Rises to Record Amid Concern of Disruptions to Supply
July 7 -- Crude oil rose to a record amid concern supplies will be disrupted by disputes over Iran's nuclear research and North Korea vowed to continue missile tests that may threaten shipping lines.
Crude for August delivery reached a high of $75.78 earlier today in New York after North Korea, which fired at least seven missiles this week, yesterday said it would continue the tests. North Korea said it doesn't have to notify the U.S., Japan and other countries about launches that are part of its regular military training.
``North Korea can also shut off a lot of supply lines'' if they continue firing missiles, said Hank King, a senior broker at LaSalle Futures Group in Chicago. ``If they are testing missiles, it will have an effect.''
Crude oil for August delivery rose 41 cents, or 0.6 percent, to $75.55 a barrel at 10:01 a.m. on the New York Mercantile Exchange. Prices have risen about 24 percent this year, fueled by concern that supplies could be cut because of an ongoing confrontation with Iran, the world's fourth-largest oil producer.
Prices will probably rise again next week on expectations surging demand will reduce gasoline supplies, according to analysts and traders surveyed by Bloomberg News. Concern that a confrontation with Iran or North Korea could disrupt supplies will help push prices higher, they said.
Twenty-six of 38 analysts in the weekly survey predicted prices would increase. It was the most bullish response in a year.
Brent crude oil for August settlement rose 71 cents, or 1 percent, to $74.79 a barrel on the ICE Futures exchange in London. Futures touched a record $75.09 a barrel.
Iran Response
Iran won't respond next week to a European Union offer of incentives in return for ending its enrichment of uranium, Agence France-Presse reported, citing a senior official in Brussels. The U.S. and EU are pressing Iran to respond to the offer before the Group of Eight summit July 15 in Saint Petersburg, Russia.
Demand for oil is also strong as the U.S. summer driving season is at about its mid-point.
``We had more American drivers last week than ever before for the Fourth of July weekend,'' King said. ``Demand is still ever-growing.''
Inventories of crude oil declined 2.4 million barrels to 341.3 million last week, the Energy Department reported yesterday. It was the second straight weekly drop. Supplies are 10 percent higher than the five-year average, according to Energy Department data.
July 7 -- Crude oil rose to a record amid concern supplies will be disrupted by disputes over Iran's nuclear research and North Korea vowed to continue missile tests that may threaten shipping lines.
Crude for August delivery reached a high of $75.78 earlier today in New York after North Korea, which fired at least seven missiles this week, yesterday said it would continue the tests. North Korea said it doesn't have to notify the U.S., Japan and other countries about launches that are part of its regular military training.
``North Korea can also shut off a lot of supply lines'' if they continue firing missiles, said Hank King, a senior broker at LaSalle Futures Group in Chicago. ``If they are testing missiles, it will have an effect.''
Crude oil for August delivery rose 41 cents, or 0.6 percent, to $75.55 a barrel at 10:01 a.m. on the New York Mercantile Exchange. Prices have risen about 24 percent this year, fueled by concern that supplies could be cut because of an ongoing confrontation with Iran, the world's fourth-largest oil producer.
Prices will probably rise again next week on expectations surging demand will reduce gasoline supplies, according to analysts and traders surveyed by Bloomberg News. Concern that a confrontation with Iran or North Korea could disrupt supplies will help push prices higher, they said.
Twenty-six of 38 analysts in the weekly survey predicted prices would increase. It was the most bullish response in a year.
Brent crude oil for August settlement rose 71 cents, or 1 percent, to $74.79 a barrel on the ICE Futures exchange in London. Futures touched a record $75.09 a barrel.
Iran Response
Iran won't respond next week to a European Union offer of incentives in return for ending its enrichment of uranium, Agence France-Presse reported, citing a senior official in Brussels. The U.S. and EU are pressing Iran to respond to the offer before the Group of Eight summit July 15 in Saint Petersburg, Russia.
Demand for oil is also strong as the U.S. summer driving season is at about its mid-point.
``We had more American drivers last week than ever before for the Fourth of July weekend,'' King said. ``Demand is still ever-growing.''
Inventories of crude oil declined 2.4 million barrels to 341.3 million last week, the Energy Department reported yesterday. It was the second straight weekly drop. Supplies are 10 percent higher than the five-year average, according to Energy Department data.
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