Oil hits record over $143 on Iran-Israel tensions
The U.S. Energy Information
Administration revised downward
April oil demand by 863,000 barrels per day to 19.77 million bpd --
3.9 percent below year-ago levels -- as surging fuel costs erode demand in the world's top consumer.
The revision showed April
demand was the lowest for the month since April 2002, and came even before
prices scaled to new hig
"This revision of the
Crude prices rushed to a
fresh high on the weaker dollar and escalating tensions between
The U.S. Navy's Fifth Fleet
said Monday the
Oil prices have jumped
nearly seven-fold since 2002 as part of a broader commodities rally sparked by
surging demand from emerging economies like
"Demand from the investment side has been boosted by problems in the financial sector as well as a desire for diversification," said Frances Hudson, investment director and strategy and asset manager for Standard Life Investments.
"Also, inflation concerns encourage investment in real assets, such as oil and gold."
Inflation in the euro zone rose to a record high of 4 percent in June, data showed Monday.
Oil prices have risen more than 40 percent this year, extending a six-year rally, in response to the Middle East tensions, plus expectations that supply will struggle to keep pace with rising demand from emerging economies such as China and India.
Saudi Oil Minister Ali al-Naimi reiterated his country's position that oil prices were being driven mostly by speculation and said the OPEC kingpin was prepared to supply all the oil its customers needed.
The heads of some of the
biggest oil companies, gathered at an oil conference in
"This is a fundamental
signal. This is not about speculation," said Tony Hayward, chief executive
of BP Plc. (Reporting by Matthew Robinson, Gene Ramos, Robert Gibbons in