LONDON, 10 March 2005 — World oil prices rocketed yesterday as Brent crude broke through $54 per barrel and New York futures neared a record high at $55.65 despite rising US stocks, dealers said.
New York’s main contract, light sweet crude for delivery in April, came within a whisker of the record high of $55.67 set in October.
The New York Mercantile Exchange (Nymex) canceled a reported transaction of $55.70 that was announced as a new record, and prices slipped further to $55.30, a gain of 71 cents.
The price of Brent North Sea crude oil for delivery in April rocketed $1.21 to $54.05 a barrel at 1730 GMT in London - exceeding the previous record of 53.36.
In New York, dealers blamed soaring oil prices on sustained demand and a cold snap that hit the eastern United States.
The surge in prices came despite a greater-than-expected increase in US crude inventories, dealers said.
Inventories of US crude oil rose sharply over the past week, but there was a drop in distillates — including crucial heating fuels — according to the US Department of Energy (DoE).
“The figures are very bearish,” said Societe Generale analyst Deborah White, adding: “The build in crude inventories is roughly twice bigger than expected.”
Crude oil supplies rose 3.2 million barrels to 302.6 million in the week ended March 4, the DoE said in its weekly report.
Reserves of distillates, which include heating oil and diesel fuel, dropped 800,000 barrels to 109.2 million, the DoE said, as the cold wave heightened demand for heating oil. “The distillate number was not very different from expectations,” White said.
Stocks of gasoline dipped by 200,000 barrels in the past week to 224.3 million, according to DoE.
World oil prices have now more than doubled since early 2002.
