Crude oil prices pushed above $68 a barrel in London on Thursday, approaching the all-time highs set after Hurricane Katrina in August 2005. Brent North Sea crude for May delivery touched $68.24 before easing to $67.60, while New York's light sweet crude settled at $67.40.
The rally followed a US Department of Energy report showing gasoline stockpiles dropped 4.4 million barrels in the week ending 31 March, far exceeding the 1.4 million barrel decline analysts had forecast. Total gasoline inventories fell to 211.8 million barrels.
Fimat analyst John Kilduff warned that failure to rebuild gasoline stocks in April could lead to "drastic regional supply shortages in the coming months." Attention is sharpening ahead of the US driving season, which begins in May. New fuel regulations taking effect later this year will also require refiners to swap the additive MTBE for ethanol.
Separately, US crude oil reserves rose 2.1 million barrels to 342.8 million barrels, their highest level since April 1999. Analysts had expected a smaller increase of roughly one million barrels.
Geopolitical anxiety also supported prices. Unrest in Nigeria and Iran's recent display of military capabilities in the Gulf, including anti-ship missiles, raised concerns about potential disruptions to oil flows through the Straits of Hormuz. Iran, the world's fourth-largest crude producer, faces international pressure over its nuclear program.
Historical summary. TurkishPress restated this wire report, first published in April 2006, in its own words.