Oil prices rose Wednesday boosted by surging demand
Oil prices rose Wednesday boosted by surging demand resulting from expectations of higher heating cost this winter in the United States.
US light sweet crude for delivery in November, rose 59 cents to $64.12 per barrel in closing trade after gaining $1.73 on Tuesday.
In London, the price of Brent North Sea crude for November delivery advanced 49 cents to close at 60.57 dollars per barrel.
IUS Energy Information Administration (EIA) forecast Wednesday that US residential space-heating expenditures are projected to increase this winter for all fuel types compared to year-ago levels. The federal Minerals Management Service released data that show a majority of oil and natural gas production in the Gulf of Mexico is still offline.
The Paris-based EIA said Tuesday the global oil demand is projected to increase 1.75 million barrels per day in 2006 because of a rebound from the temporary negative impact of the two hurricanes.