World oil prices reached unprecedented levels. Crude oil prices last week touched a new high of USD 67.10 per barrel before easing to USD 66per barrel. New York's main contract, light sweet crude for delivery in Sep 2005, increased 95 cents to USD 66.75 per barrel in early trade before touching USD 67.10 per barrel.
Meanwhile, Brent North Sea crude prices gained 97 cents to USD 66.35 per barrel, after touching an all-time high of USD 66.77 per barrel.
Oil prices are increasing on account of increasing global demand and US refinery problems. Around ten US refineries have reported unplanned shutdowns in the past three weeks. US Energy Department's weekly report said refinery problems and increased demand has led to US's gasoline inventories decline 2.5 as compared to a year ago.
Global Insight Energy's Analyst, Simon Wardell said that petrol and gasoline situation in the US is on of the major cause of concern and it is likely to continue for some time, as a shortage of refining capacity cannot be resolved in a short span of time.
Production shutdowns at strained US refineries continued to see high fuel prices. Problems were reported at ConocoPhillips facility in Wood River, Illinois and also at BP's Texas City refinery, the third largest refinery in the US. Meanwhile, BP's North Sea 120,000 barrel per day (bpd) Schiehallion oilfield is unlikely to reopen until the end of the month, after repairs and testing is completed.
The International Energy Agency has maintained its growth estimates of overall demand at 1.60mn barrels per day this year and 1.78mn barrels next year, after adjusting for an easing of demand for oil in China and a small upward adjustment for US demand.