Oil Gets More Expensive Again

Demand for refined products, especially distillate fuels, has increased by 6.5% from last year. Heating oil gained 2 cents to $1.645.

“The market is riding a wave of sentiment,” said Tim Evans, senior energy analysts at IFR Markets. “Actual production is rising, inventories are higher, even the build in distillates is 800,000 higher than last year, so where is the shortage?”

According to Evans, some of the oil price hike is based on chatter about “peak oil,” a theory that world oil reserves have reached their peak and will gradually decline until the world eventually runs out of it completely.
TheStreet.com