Oil Rises Above $59 for First Time on Concern About Inventories

Crude oil rose above $59 a barrel in New York for the first time, reinforcing concern record oil prices may hinder global economic growth.

“I definitely see $60 on the horizon and $50 a fond memory,” Gal Luft, executive director of the Washington-based Institute for the Analysis of Global Security, said in an interview. “The market is extremely tight and there’s absolutely no indication that things are going to change for the better.”

Oil surged to a record $59.18 a barrel on the New York Mercantile Exchange on concern producers may strain to meet demand when fuel consumption peaks later this year. Global oil use will rise 150,000 barrels a day more than forecast in the fourth quarter, the Organization of Petroleum Exporting Countries said on June 16.
Bloomberg