17 p a g e russian oil da bdl high prices key to

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Unformatted text preview: stronger US demand,” price-climbs-above-90-152245296.html) NEW YORK (AP) -- The price of oil on Wednesday briefly hit $90 per barrel for the first time since May after the government said U.S. oil demand is on the rise. The Energy Information Administration reported that average oil demand increased last week in the U.S. for the third week in a row. Oil demand had been down most of the year, when compared with 2011, as manufacturing activity slowed and drivers cut back on travel. "W e keep talking about the slow economy, but the market is seeing some improved oil demand today," said Phil Flynn, an analyst at Price Futures Group. Benchmark U.S. crude rose by 65 cents to end the day at $89.87 per barrel in New York. It hit $90.04 per barrel earlier in the day, the highest since May 30 . Brent crude, which sets the price for oil imported into the U.S., rose by $1.16 to end at $105.16 per barrel in London. EIA's weekly petroleum report also noted a surprise drop in gasoline supplies last week as refineries pulled back on production. Oil supplies also fell, though the drop was less th an what analysts expected. Meanwhile, China's biggest companies warned of sharp drops in profits this year. That country's economy is still growing at a much faster clip than Western nations, including the U.S., but Premier Wen Jiabao has warned that the pace of growth will be unstable. China is the second-largest oil consumer in the world behind the U.S., and a slowdown in its economy could cut world oil demand. [____] US demand key to global prices Xinhua News 2012 (Xinhua Global NewsJuly 19, 2012, “Oil Prices Climb for 6th Day on Rising US Demand,” U.S. oil prices extended the winning streak to the sixth straight day on Wednesday after the latest report showed energy demand in the United States was growing. According to the Energy Information Administration, U.S. average oil demand increased for the third week in a row. U.S. crude oil inventories fell by 809,000 barrels last week while gasoline inventories dropped by 1.82 million barrels, contrary to forecasts. 15 | P a g e Russian Oil DA BDL Link – High US Demand Key to High Oil Prices [____] [____] US demand controls global oil prices David Bird, Staff Writer for The Wall Street Journal, 2010 (December 27, “Oil, at $91-Plus, Feeling U.S. Demand,” Crude-oil futures prices, at a two-year high above $91 a barrel, are finding support from a surprising source: U.S. oil demand. Three weeks ago, U.S. forecasters said December oil demand would dip from a year ago. That would have been par for the course for the world's biggest oil consumer this year, after gasoline consumption underwhelmed over the summer and oil and fuel supplies reached a 27-year high in September. The combination of struggling demand and an oil glut had kept prices nearly flat this year even as most other commodity markets soared. But in the latest three...
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