New York – Crude-oil prices soared above $65 a barrel Monday on fears that escalating violence in Nigeria could result in supply disruptions, while gasoline prices climbed toward a seasonal peak.
Early estimates for draws on the country’s crude-oil and gasoline stocks pushed prices higher, analysts said.
Last week, U.S. gasoline inventories stood at their lowest level since October 2005 and were about 3 percent below the level at this time last year, said Citigroup Global Markets energy analyst Tim Evans. The price of gasoline on the futures market and at the pump historically peaks ahead of the summer driving season – when concerns about supplies reach a crescendo.
“I think we’re close to a seasonal top to gasoline prices,” Evans said. “That typically occurs when anxiety about summer supplies is at its peak. We may not be the most anxious today, but we’re not far from it.”
Light, sweet crude for June delivery climbed $1.78 to settle at $65.89 a barrel on the New York Mercantile Exchange.
