Oil prices stuck above $60 mark
June 28, 2005
Oil prices are continuing to hover close to their record level of $60.95 as concerns about supply persist.
Uncertainty about the situation in Iran following the weekend's election of a new President is also buoying prices.
US light crude fell 46 cents from Monday's closing price to trade at $60.08 a barrel. Brent, the other main contract, rose 94 cents to $59.30.
Analysts said that prices stay high in coming months, especially as the peak US summer period is about to start.
Iranian changes
Demand for oil has shown little signs of abating, despite crude prices increasing more than 60% during the past 12 months.
Meanwhile, Iran's new President Mahmoud Ahmadinejad has vowed to continue Iran's nuclear programme, drawing criticism from the US - heightening geopolitical worries surrounding the country.
There also are concerns that Mr Ahmadinejad will reform the country's oil sector, possibly shutting out foreign firms, a move that may disrupt supplies from the second biggest member of oil producing cartel Opec.
Jane Collin, an analyst at Energyintel, said that should Iraq use its oil revenue to fund social programmes rather than reinvesting to boost production, then "Opec's ability to meet projected global demand could be tested to the limit".
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