Oil rises above $97 per barrel after brief reprieveBy JONATHAN FAHEY
The Associated Press | February 15,2013NEW YORK — The price of oil rose above $97 per barrel Thursday, reversing Wednesday’s small drop.
In New York, crude rose 30 cents to finish at $97.31 per barrel. Brent crude, which is used to price oil that many U.S. refineries buy to make gasoline, rose 12 cents to end at $118 per barrel in London.
Crude rose sharply in early January, then began to waver between $95 and $98 per barrel, where it has stayed for the past month.
But just as oil prices began to flatten, retail gasoline prices began to take off. The average U.S. pump price has risen every day since Jan. 18, adding 34 cents over the period. Thursday it rose a penny to $3.63, the highest ever for this time of year.
Americans may be able to offset higher gasoline bills with lower heating and electricity bills. Natural gas futures fell 14.3 cents, or 4.3 percent, to finish at $3.16 per thousand cubic feet, after the Energy Department reported that the nation’s natural gas supplies remained well above their 5-year average last week.
Oil prices rose despite data showing continuing weakness in the European economy. The eurozone economy shrank by 0.6 percent in the final quarter of 2012 from the previous three-month period, more than the 0.4 percent drop expected by markets, according to Eurostat, the EU statistics office. Germany, Europe’s largest economy, shrank by 0.6 percent for the period.
Addison Armstrong, an analyst at Tradition Energy, said oil prices have stayed high because investors are using cheap credit brought on by low interest rates to invest in commodities. Also Saudi Arabia has reduced its output somewhat, shrinking world supplies slightly. And the U.S. and Chinese economies appear to be getting healthier.
Armstrong does not expect oil to continue to rise, however, because supplies are ample and demand is about flat. “I don’t expect we’ll revisit the highs we saw last year,” he said. “The fundamentals are going to reassert themselves soon.”
There is some disagreement on just how much the oil the world economy needs. On Wednesday the Paris-based International Energy Agency lowered its consumption forecast by 85,000 barrels a day compared with data from a month ago. On Tuesday OPEC raised its 2013 forecast for global demand, citing signs of recovery in the global economy.
The IEA expects the world to use 90.7 million barrels of crude oil a day this year. That is 1 million barrels a day more than OPEC’s estimate of 89.7 million barrels a day.
In other energy futures trading on the Nymex:
Wholesale gasoline rose 8 cents to end at $3.12 a gallon.
Heating oil up about half a cent to finish at $3.22 a gallon.MORE IN National / World BusinessNEW YORK — Citigroup kept a lid on costs and that helped boost its bottom line last quarter. Full StoryUnitedHealth hiked its 2015 forecast after soaring past Wall Street’s first-quarter expectations... Full Story
- Most Popular
- Most Emailed
- RICHARD'S POOR ALMANACK: On this day 1739, 'Richard Palmer' identified in prison at York Castle as the notorious outlaw DICK TURPIN; IN 1836, Battle of the Alamo begins near San Antonio de Bexar, Texas; 1896, the Tootsie Roll invented by LEO HIRSCHFELD.
- RICHARD'S POOR ALMANACK: On this day in 1472, Orkney, Shetland islands put up as collateral by Norway to Scotland in lieu of dowry for MARGARET OF DENMARK on her marriage with JAMES III, king of Scotland; 1962, JOHN GLENN first American to orbit Earth.
- TOMORROW'S HEADLINES TODAY: City mayoral candidates debate campaign issues; Hartford, Conn., woman still missing; Neal Goswami reports attempts to legislate suicide; local woman loses 100 pounds through TOPS program.
- RICHARD'S POOR ALMANACK: On this day in 1878, JOHN TUNSTALL murdered near Lincoln, New Mexico, by the outlaw JESSE EVANS; in 1930, ELM FARM OLLIE first cow to fly in aircraft, first to be milked airborne; 1955, nuke test WASP; '79, snow in Sahara.
- TOMORROW'S HEADLINES TODAY: Rutland Herald News Editor Alan J. Keays and staff writer Gordon Dritschilo discuss stories planned for the February 18, 2015, edition of the newspaper: Winter budgets maxed, legal marijuana, Springfield bank job, USPS slowdown
- RICHARD'S POOR ALMANACK: On this day in 1249 AD, ANDRE of LONGJUMEAU is dispatched by LOUIS IX of France to meet the KHAGAN, ruler of the Mongol Empire; in 1804, during 1st Barbary War, STEPHEN DECATUR scuttles the pirate-held USS Philadelphia in Tripoli.