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Oil rises above $72 as Iran shuns talks Supreme leader rejects need for nuclear talks with U.S.; demand in China rises; crude future up 19 percent from a year ago The Associated Press
Oil prices rose slightly June 27 as traders focused on shipping delays along the Gulf Coast and as Iran’s supreme leader rejected the need for nuclear talks with the United States.
Also, rising demand from China — Asia’s largest consumer of fuels — have lifted oil prices in recent weeks, with crude futures now trading about 19 percent higher than a year ago.
“The market seems to be extending some of the gains from last week,” said Man Financial broker Andrew Lebow. “Gasoline has provided a lot of the leadership” for the oil-price increases.
Light sweet crude for August delivery rose 25 cents to $72.05 a barrel on the New York Mercantile Exchange, where gasoline futures were up nearly 2 cents at $2.197 a gallon.
With gasoline futures up roughly 20 cents over the past week, oil analyst Tom Kloza of the Wall, New Jersey-based Oil Price Information Service believes pump prices are headed significantly higher over the next two months.
Brent crude futures on the ICE Futures exchange climbed 54 cents to $71.27 a barrel.
Limited traffic resumes to refineries The U.S. Coast Guard said the Calcasieu Ship Channel remains closed but that limited tug and barge traffic has resumed through an intercoastal waterway. The channel has been off limits due to the spread of oil from a spill the week of June 19 at the Citgo Petroleum Corp. facility in Lake Charles, La., and it could remain closed through the end of the week, depending on how the cleanup proceeds, according to Coast Guard petty officer Chad Saylor.
Saylor said eight ships carrying crude oil are waiting to enter the channel. As a result, four refineries in the Lake Charles area that account for 3 percent of the nation’s refining have reduced runs, albeit in tiny amounts.
On June 27, Iran’s Ayatollah Ali Khamenei said Iran does “not need” talks with the United States over its nuclear program because nothing would be gained, state television reported.
Washington has warned Iran that it could face political and economic sanctions before the U.N. Security Council if it doesn’t stop its nuclear activities, which the United States and its European allies say is an attempt to produce nuclear weapons. Tehran says the uranium will be used only for a peaceful energy program.
Chinese demand accelerates Elsewhere, recent Chinese customs data showed the country’s oil demand growth accelerated to 13.5 percent in May, as refiners boosted output and curbed exports ahead of a domestic price increase to meet peak summer demand. The rapid increase in car sales in China — to 24.1 percent in May from a year earlier — have also contributed to the rise in gasoline demand, Shum said.
In other Nymex trading, heating oil futures rose nearly 2 cents to $2 a gallon, while natural gas futures climbed 8 cents to $6.05 per 1,000 cubic feet.
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