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(From Globe and Mail online)
'Super spike' report sends oil, gas soaring. Futures prices climb to record levels
By ROMA LUCIW
Saturday, April 2, 2005 Page B3
With files from Associated Press
Crude oil and gasoline futures soared to record levels yesterday, one day after a U.S. investment bank suggested oil prices could rise as high as $105 (U.S.) a barrel and a major Venezuelan refinery was temporarily shuttered.
Light sweet crude futures for May delivery closed up $1.87 at $57.27 a barrel on the New York Mercantile Exchange, topping a record high close of $56.72 on March 18. Earlier in the session, they touched a record $57.70 a barrel, topping a previous intraday high of $57.60 on March 17.
Oil prices are 67 per cent higher than a year ago, but still well below the inflation-adjusted high of more than $90 a barrel set in 1980.
Analysts said the latest runup in oil prices suggests there is new money coming into the market from hedge funds and other speculators, as well as from commercial players, including airlines and fuel distributors, that are trying to lock in prices out of fear that the upward trend may continue.
Gasoline for May delivery also reached new levels, climbing 6.79 cents to $1.731 a gallon in New York. Prices touched $1.736 a gallon, the highest since trading began in 1984.
Tom Kloza, director of Oil Price Information Service, told Associated Press the recent surge in gasoline futures means average U.S. pump prices are likely to rise above $2.25 a gallon within a few weeks.
Several analysts were critical of an extremely bullish report that Goldman Sachs Group Inc. released Thursday, saying it created unreasonable fear in the market.
The report said oil markets may have entered what it calls a "super spike" period, which could send crude as high as $105 a barrel. The New York brokerage boosted its estimate for a so-called "super spike" range to between $50 and $105 amid unexpected strength in oil demand and economic growth, especially in the United States and China. Previously, the brokerage's range had been $50 to $80.
News that a major Venezuelan oil refinery has been temporarily closed was also pushing prices higher yesterday. State-owned Petroleos de Venezuela SA, South America's largest oil company, said its Amuay refinery was shut down Thursday for as long as a week because of an electrical failure.
'Super spike' report sends oil, gas soaring. Futures prices climb to record levels
By ROMA LUCIW
Saturday, April 2, 2005 Page B3
With files from Associated Press
Crude oil and gasoline futures soared to record levels yesterday, one day after a U.S. investment bank suggested oil prices could rise as high as $105 (U.S.) a barrel and a major Venezuelan refinery was temporarily shuttered.
Light sweet crude futures for May delivery closed up $1.87 at $57.27 a barrel on the New York Mercantile Exchange, topping a record high close of $56.72 on March 18. Earlier in the session, they touched a record $57.70 a barrel, topping a previous intraday high of $57.60 on March 17.
Oil prices are 67 per cent higher than a year ago, but still well below the inflation-adjusted high of more than $90 a barrel set in 1980.
Analysts said the latest runup in oil prices suggests there is new money coming into the market from hedge funds and other speculators, as well as from commercial players, including airlines and fuel distributors, that are trying to lock in prices out of fear that the upward trend may continue.
Gasoline for May delivery also reached new levels, climbing 6.79 cents to $1.731 a gallon in New York. Prices touched $1.736 a gallon, the highest since trading began in 1984.
Tom Kloza, director of Oil Price Information Service, told Associated Press the recent surge in gasoline futures means average U.S. pump prices are likely to rise above $2.25 a gallon within a few weeks.
Several analysts were critical of an extremely bullish report that Goldman Sachs Group Inc. released Thursday, saying it created unreasonable fear in the market.
The report said oil markets may have entered what it calls a "super spike" period, which could send crude as high as $105 a barrel. The New York brokerage boosted its estimate for a so-called "super spike" range to between $50 and $105 amid unexpected strength in oil demand and economic growth, especially in the United States and China. Previously, the brokerage's range had been $50 to $80.
News that a major Venezuelan oil refinery has been temporarily closed was also pushing prices higher yesterday. State-owned Petroleos de Venezuela SA, South America's largest oil company, said its Amuay refinery was shut down Thursday for as long as a week because of an electrical failure.
