Brent oil price surges to 11-month high
Friday, 13 July 2007 17:55The price of London's Brent crude oil hit another 11-month high on Friday evening, buoyed by speculative buying and concerns over tight US fuel supplies.
Brent North Sea crude leapt to $77.45 - which was the highest point since August 10, 2006, and about $1 away from the record high $78.64 hit the same month.
New York's main oil futures contract gained 32 cents to $72.82 per barrel.
On Thursday, it had hit $73.80, which was last seen on August 15, 2006.
Oil prices saw strong gains in the past two weeks, with fresh fund and speculative money flowing into the market, amid strong demand in the US during the summer driving season, as petrol stockpiles remained below usual levels for this time of the year.
Geopolitical concerns, including continuous troubles in Nigeria, and various refinery outrages helped to push the market higher.
Traders assessed the latest monthly oil market report from the International Energy Agency (IEA).
The energy watchdog raised its 2008 forecast for oil product demand by 2.5% to 88.2 million barrels a day 'largely due to a weather-related rebound in the OECD and strong demand in non-OECD countries,' notably China and the Middle East.
The IEA also signalled again that the OPEC producers' grouping should pump more crude, notably during the ongoing US summer driving season when many Americans take to their cars for their holidays.
