Oil surpasses $125 per barrel
Updated: 2008-05-09 21:07
Some pointed to a small decline in distillate stocks, which include diesel and heating oil and normally drive prices during the Northern Hemisphere winter; others said speculation and computer-generated buying was keeping oil prices high.
"Crude oil is currently held up in a tug-of-war between the Goldman reality and the physical reality," said Olivier Jakob of Switzerland's Petromatrix in a research note, adding that the investment bank's prediction made for "a great story to support pension funds piling more into commodities."
Mark Pervan, senior commodity strategist at ANZ Bank in Melbourne, Australia, said it may be a combination of continued wariness over potential supply disruptions as well as prospects for a strengthening in crude demand heading into the US summer driving season.
"US gasoline stocks have certainly dropped quite sharply over the last month," he said. "What'll happen in the near term is that we may likely see an uptick in US refining capacity to rebuild gasoline stocks and we may see a short-term build in crude demand as a result."
Computer files retrieved from the laptop of a top guerrilla suggested broader and deeper ties between Venezuela's leader and the Revolutionary Armed Forces of Colombia than has been reported in the past, The Wall Street Journal reported Friday.
Ties between the US and Venezuela are already strained. Chavez has said the computer files are fakes.
Prices may also be getting a boost from comments Thursday by the OPEC secretary general.
Abdalla Salem El-Badri on Thursday reiterated his position that oil supplies are adequate. He said several Organization of Petroleum Exporting Countries oil projects are coming on line, but he noted that several member countries are having a hard time finding buyers for their additional supplies.
In other Nymex trading, June gasoline futures rose 1.92 cents to $3.1570 a gallon, while heating oil futures rose 3.02 cents to $3.54 a gallon. Natural gas futures rose 5.1 cents to US$11.314 per 1,000 cubic feet.
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