In recent days oil market has witnessed surge in global oil price. Crude oil went to a two-month high on concern that U.S. refiners will fail to produce enough gasoline to keep up with peak demand this summer.
Short fall in supply of oil from Nigeria and uncertainty on Iranian nuclear issues are already keeping buyers of oil nervous. Delivery in May future hit $68 per barrel, a 20 pct jump from last years $56.5 per barrel, only $2.85 from August 2005 high’s of $70.85.
Since last 3 years oil market has been witnessing a substantial rise in the average price of oil. Last week number of oil analyst and agencies have one again raised their 2006 average forecast price to $63.
US Energy department Data reported that refineries are operating around 86 pct of their capacity. Analyst estimates that during same period last year, plants utilised 94 percent of their capacity. Not to forget that February, March & April are also crucial as all the maintenance work is done during these months.
There is difference of opinion as experts differ on whether the current soaring oil demand will outstrip the current supplies, and how quickly.
But for oil...
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