Oil crosses $62 a barrel

Aug 3 | Updated: Aug 4 2005, 05:52am hrs
Crude oil rose to a record $62.47 a barrel in New York amid concern that fuel supplies will be insufficient to meet demand in the fourth quarter. US crude-oil inventories fell 1.3 million barrels last week, according to the median of forecasts by 15 analysts before an Energy Department report. A spate of refinery closures and high demand from motorists would probably cut gasoline supplies, the survey showed. A government forecast yesterday said the Atlantic Ocean hurricane season would be worse than expected.

All of the refinery problems and the weather-related delays have helped push us higher, said Tom Bentz, an oil broker at BNP Paribas Commodity Futures Inc in New York.

Were expecting the report today to show that both crude and gasoline stocks fell last week. The refinery difficulties are going to continue to support prices as they cut into product stocks. Crude oil for September delivery rose 51 cents, or 0.8%, to $62.40 a barrel at 10:01 a.m. on the NYME. Prices are up 41% from a year ago. In London, the September Brent crude-oil futures contract rose 56 cents, or 0.9%, to $61.18 a barrel on the International Petroleum Exchange.

Bloomberg