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Montevideo, November 22nd 2024 - 08:25 UTC

 

 

Oil hits 60 US dollars pb and still going strong

Friday, June 24th 2005 - 21:00 UTC
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Texas intermediate light crude reached Thursday an all time record of 60 US dollars per barrel, closing at 59.42 US dollars, which represents a 42% increase since the beginning of 2005.

Growing concerns over supply of crude and refined products in the coming months, particularly the last quarter of this year in the northern hemisphere, plus the sustained demand from China and India have sent oil prices surging.

At the beginning of 2005 West Texas Intermediate was selling at 42,12 US dollars pb and has since consistently increased breaking the 50 US dollars milestone February 22. In March a new record was set, 56 US dollars and in April 58 US dollars as fears of growing demand, insufficient refining capacity and mutual funds speculation in commodities kept pushing prices.

Analysts warn that given the current market conditions prices will not begin declining until there are clear signs of a drop in demand, which traditionally increases with the beginning of the winter in the northern hemisphere.

An average price ranging between 50 and 55 US dollars pb is forecasted for the rest of 2005 and next year.

Categories: Mercosur.

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