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Oil surges to $66 a barrel
Crude reaches another historic mark after demand agency forecast, refinery snags and Iran concerns.
August 11, 2005: 4:11 PM EDT
LONDON (Reuters) - Oil charged to a record $66 a barrel Thursday as Iran's nuclear work put it at odds with the United Nation's atomic watchdog, and more U.S. refinery snags threatened gasoline supplies to the world's biggest consumer.
Earlier the International Energy Agency said non-OPEC oil output growth was falling short of expectations, putting more of a burden on OPEC's stretched production capacity to meet rising demand.
Light, sweet crude for September delivery ended up at 90 cents, reaching $65.80 a barrel, after hitting a record-high of $66. London Brent was up $1.39 at $65, after touching $65.66.
"The presence of significant headline risk, most particularly from Iran's international relations, the Atlantic hurricane season and from tightness in refining, is continuing to support prices at higher levels," said Barclays Capital.
Treasury Secretary John Snow on Thursday said the question of releasing oil from U.S. emergency stockpiles to ease lofty oil prices was "off the table."
"That's really off the table for circumstances like the ones we're facing now," Snow said in an interview with CNBC.
In Vienna, the board of governors of the International Atomic Energy Agency approved a resolution demanding that Iran suspend all nuclear activities, a diplomat said.
EU diplomats said if OPEC's second biggest producer failed to comply with the resolution they would push that Iran be referred to the UN Security Council for punitive action.
Refinery strain
In the United States, where refinery problems have strained gasoline stocks during the peak demand season, BP shut several units at its Texas City refinery, the company said.
And ConocoPhillips Wood River refinery suffered a power problem that briefly forced shut some units, the company said.
The news came on the heels of U.S. stock data on Wednesday that showed another fall in gasoline inventories in the world's biggest consumer that brought inventories 3.7 percent below a year ago.
Edward Meir, of Man Energy, said oil price forecasts were running the gamut. "In markets like these, it is best to let things run their course, especially given the fact that there are no resistance signposts to guide us."
The International Energy Agency, adviser to 26 industrialized nations, earlier nudged up its world oil demand growth forecasts for this year and next, leaving already stretched OPEC to fill the supply void.
The IEA cut non-OPEC supply growth this year by 205,000 barrels per day, with production problems in the U.S. Gulf, Mexico, Norway and Britain accounting for most of the shortfall. Russia is also pumping less than expected.
"The extent to which [the IEA] felt compelled to cut its estimates of non-OPEC production is a bullish factor," said Deborah White, senior energy analyst at SG Commodities.
Even with U.S. crude averaging above $53 a barrel for the year to date, in real terms prices are still below the $80 a barrel average of 1980, after the Iranian revolution.
Crude reaches another historic mark after demand agency forecast, refinery snags and Iran concerns.
August 11, 2005: 4:11 PM EDT
LONDON (Reuters) - Oil charged to a record $66 a barrel Thursday as Iran's nuclear work put it at odds with the United Nation's atomic watchdog, and more U.S. refinery snags threatened gasoline supplies to the world's biggest consumer.
Earlier the International Energy Agency said non-OPEC oil output growth was falling short of expectations, putting more of a burden on OPEC's stretched production capacity to meet rising demand.
Light, sweet crude for September delivery ended up at 90 cents, reaching $65.80 a barrel, after hitting a record-high of $66. London Brent was up $1.39 at $65, after touching $65.66.
"The presence of significant headline risk, most particularly from Iran's international relations, the Atlantic hurricane season and from tightness in refining, is continuing to support prices at higher levels," said Barclays Capital.
Treasury Secretary John Snow on Thursday said the question of releasing oil from U.S. emergency stockpiles to ease lofty oil prices was "off the table."
"That's really off the table for circumstances like the ones we're facing now," Snow said in an interview with CNBC.
In Vienna, the board of governors of the International Atomic Energy Agency approved a resolution demanding that Iran suspend all nuclear activities, a diplomat said.
EU diplomats said if OPEC's second biggest producer failed to comply with the resolution they would push that Iran be referred to the UN Security Council for punitive action.
Refinery strain
In the United States, where refinery problems have strained gasoline stocks during the peak demand season, BP shut several units at its Texas City refinery, the company said.
And ConocoPhillips Wood River refinery suffered a power problem that briefly forced shut some units, the company said.
The news came on the heels of U.S. stock data on Wednesday that showed another fall in gasoline inventories in the world's biggest consumer that brought inventories 3.7 percent below a year ago.
Edward Meir, of Man Energy, said oil price forecasts were running the gamut. "In markets like these, it is best to let things run their course, especially given the fact that there are no resistance signposts to guide us."
The International Energy Agency, adviser to 26 industrialized nations, earlier nudged up its world oil demand growth forecasts for this year and next, leaving already stretched OPEC to fill the supply void.
The IEA cut non-OPEC supply growth this year by 205,000 barrels per day, with production problems in the U.S. Gulf, Mexico, Norway and Britain accounting for most of the shortfall. Russia is also pumping less than expected.
"The extent to which [the IEA] felt compelled to cut its estimates of non-OPEC production is a bullish factor," said Deborah White, senior energy analyst at SG Commodities.
Even with U.S. crude averaging above $53 a barrel for the year to date, in real terms prices are still below the $80 a barrel average of 1980, after the Iranian revolution.
I'm moving to NC! 
Its a dollar more here.
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