Crude Oil Rises Most in 6 Months on Concern Over Fuel Supplies

Crude oil had the biggest gain in almost six months, topping $54 a barrel in New York, as refinery malfunctions raised concern that refiners won’t produce enough gasoline to meet peak demand this summer.

U.S. refineries have increased operations to about 95 percent of capacity as they struggle to meet growing demand. Royal Dutch/Shell Group shut two units at its Deer Park, Texas, refinery on May 30. Analysts were divided on whether a report tomorrow will show that oil supplies rose or fell last week after an unexpected supply decline the week ended May 20.

“We’ve approached $60 a barrel twice in the last year because of concerns that supply is insufficient,” said John Kilduff, vice president of risk management at Fimat USA in New York. “Concern about the ability of refiners to meet growing fuel demand means that the slightest refinery problem results in a surge in prices.”
Bloomberg