Oil prices return to record highs
August 11, 2005
Refinery stoppages and security fears are sending oil prices soaring, topping $65 a barrel for the first time.
The increase in energy costs has sent petrol price soaring around the world.
US pumps are serving gasoline at as much as $2.50 a gallon as US light, sweet crude reached $65.23 a barrel, while UK petrol is close to £1 a litre.
Security fears regarding Saudi Arabia and Iran remain a key driving force behind the gains, while stoppages at US refineries are also a concern.
The new high of $65.23 a barrel for oil futures on the Nymex exchange in New York, reached in Asian trading early on Thursday, is the highest on record since the contract began trading in 1983.
The Nymex price was a gain of 33 cents on Wednesday, during which oil prices rose 2.9%.
In London on Wednesday, Brent crude closed up more than 3% at $63.99, having earlier breached $64.
Security concerns
The US refinery stoppages - some due to fires, others due to breakdowns - have helped reduce gasoline stocks in the US by 2.1 million barrels, at a time when seasonal demand is rising sharply.
As for security worries, Saudi Arabia, home to a quarter of estimated global oil reserves, is still high on the list of concerns.
US embassy buildings, closed earlier in the week after warnings of possible trouble, have reopened.
But the UK and Australia are still telling travellers that attacks could be imminent and travellers should avoid the kingdom.
Iran, meanwhile, is also troubling energy analysts, after the new government ordered seals to be broken on a uranium processing plant.
The country is Opec's second-largest oil producer.
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