The price of oil gyrated on Thursday after the U.S. government released data that showed a growing domestic supply of &to=http:// english.pravda.ru/comp/2002/06/10/30018.html ' target=_blank>gasoline and other fuels, but also rising demand.
By midday, July light sweet crude futures traded 45 cents lower at $54.15 on the New York Mercantile Exchange, where prices had risen as high as $55.40 earlier in the day.
Oil analyst Marshall Steeves at brokerage &to=http:// english.pravda.ru/comp/2002/06/10/30018.html ' target=_blank>Refco Group Inc. in New York said "schizophrenic is a very good word" to describe the energy market's psychology these days.
Just a few weeks ago prices had fallen below $47 a barrel on signs of slower economic growth and rising petroleum inventories worldwide. Now traders seem consumed once again by fears of potential supply tightness later in the year, informs the Business Week.
According to Reuters, U.S. distillate demand growth is running at more than 3 percent this year, outpacing gasoline or crude, due in part to higher diesel use from truckers moving Chinese products to market from the West Coast, and rising jet fuel consumption from airlines.
Dealers said continued strong demand growth in Europe, where diesel-powered cars are dominating market share, and from China's power sector was also keeping the distillates squarely in the spotlight.
Chinese President Xi Jinping warned his new US counterpart Joe Biden not to push Europe into an alliance against Beijing