Oil Futures Up On Oil Demand Projection

Crude futures gained Thursday after the U.S. Department of Energy gave a mixed picture of U.S. petroleum stocks but suggested that it may raise its 2005 projection for oil demand.

Analysts said that tightening crude supplies in the United States, the world’s largest oil consumer, heighten supply-related fears and could push prices to new highs.

“The market remains very volatile and even minor events in key regions of the world will draw immediate reactions from market players,” said Muhammad Ali Zainy, an analyst with the Center for Global Energy Studies in London.
BusinessWeek