Oil Prices Settle Above $72 a Barrel
Oil prices tanked by more than $2 a barrel Wednesday, May 3 after U.S. government data showed gasoline supplies rising for the first time in two months as refineries ramp up output and demand flattens.
But oil prices remain about 46 percent higher than a year ago, and analysts do not expect them to fall sharply anytime soon.
The most pressing source of energy-market anxiety stems from the possibility that Iran, a key exporter, could cut supplies because of international pressure to modify its nuclear program. Strong global demand, a limited supply cushion and persistent production outages in Nigeria and the Gulf of Mexico have also exerted upward pressure. And a surge of investors betting on oil and other commodities has exacerbated the run-up.
But oil prices remain about 46 percent higher than a year ago, and analysts do not expect them to fall sharply anytime soon.
The most pressing source of energy-market anxiety stems from the possibility that Iran, a key exporter, could cut supplies because of international pressure to modify its nuclear program. Strong global demand, a limited supply cushion and persistent production outages in Nigeria and the Gulf of Mexico have also exerted upward pressure. And a surge of investors betting on oil and other commodities has exacerbated the run-up.
posted by Ottawa Gas Prices | 6:54 PM
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