- Title: USA: Oil slips after hitting a record 143 dollars a barrel
- Date: 1st July 2008
- Summary: (AMREP) NEW YORK CITY, NEW YORK, UNITED STATES (JUNE 30, 2008) (REUTERS) (SOUNDBITE) (English) RANDY ROTHENBERG, TRADER, BATTALION CAPITAL, SAYING: "The general trend is, if you look at production over the last several years, production actually has been declining, while demand has been going up, when you look at the emerging markets, China, India, so it's a longer term trend. It seems to be obviously an underlying fundamental."
- Embargoed: 16th July 2008 13:00
- Keywords:
- Location: Usa
- Country: USA
- Topics: Economic News,Energy
- Reuters ID: LVAC0KUIOZMAP4QNX82J6EHYQTF
- Story Text: Oil has hit a record-high of more than 143 U.S. dollars a barrel, as the market eyes growing tensions between Iran and Israel.
Oil slipped from a record high of more than 143 U.S. dollars a barrel on Monday (June 30) as weak U.S. demand countered mounting tensions between OPEC nation Iran and Israel.
U.S. crude settled 21 cents lower at 140.00 U.S. dollars a barrel, after hitting an all-time high of 143.67 earlier. London Brent crude settled 48 cents lower at 139.83 U.S. dollars.
The U.S. Energy Information Administration revised downward U.S. April oil demand by 863,000 barrels per day to 19.77 million bpd -- 3.9 percent below year-ago levels -- as surging fuel costs erode demand in the world's top consumer.
The revision showed April demand was the lowest for the month since April 2002, and came even before gasoline prices scaled to new highs in June.
Speculation continues about how high the price of oil will go before levelling out and dropping. Randy Rothenberg, a trader with Battalion Capital, believes it's still got a little way to go before reaching a ceiling.
Earlier, crude prices rushed to a fresh high on the weaker dollar and escalating tensions between Iran and Israel over Tehran's nuclear program.
Oil prices have jumped nearly seven-fold since 2002 as part of a broader commodities rally sparked by surging demand from emerging economies like China and India.
High fuel prices have hit the economies of some consuming nations, prompting some countries including the United States to call on OPEC to increase output.
Saudi Oil Minister Ali al-Naimi reiterated his country's position that oil prices were being driven mostly by speculation and said the OPEC kingpin was prepared to supply all the oil its customers needed.
The heads of some of the biggest oil companies, gathered at an oil conference in Madrid, said fundamentals, not investor flows, were the main driver of prices.
A Reuters poll of analysts forecast weekly government data due out on Wednesday will show a drop in U.S. crude inventories and a build in distillates and gasoline for the week ending June 27.
The Dow and S&P 500 were little changed on Monday on the final trading day of the second quarter as record oil prices offset weakness in financial stocks hounded by fears of further credit losses. - Copyright Holder: REUTERS
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