Oil futures surged to break US$123 a barrel yesterday, despite bearish
data on US crude inventories and stronger dollar against major currencies.
Light, sweet crude for June delivery hit a all-time peak of US$123.80 a
barrel on the New York Mercantile Exchange before falling slightly to settle at
US$123.53, trading up US$1.69.
The US Energy Department's weekly report shows that oil supplies increased
5.65 million barrels to 325.6 million barrels last week, much more than analysts
previously predicted. Gasoline supplies also rose against analysts' forecast of
decline.
The market, however, seemed to focus more on the supply falls of distillate
fuels, which include diesel and heating oil, revealed in the report. The market
did not react to a stronger dollar either, which was higher against Euro.
The rally of oil prices fresh highs came a day after investment bank Goldman
Sachs predicted that oil will reach US$200 in two years. And concerns on
supplies in world's major oil exporters continued to linger.
In London, Brent crude futures for June delivery also set a new record of
US$122.32 a barrel, US$4.33 up.
