Crude oil rose for a second day in New York to near a record after the International Energy Agency said supplies may not keep up with demand...
Crude oil rose for a second day in New York to near a record after the International Energy Agency said supplies may not keep up with demand.
The IEA said in a report that spare OPEC capacity will shrink by 2013, keeping the market ``tight.'' The growth in global excess supply will peak at about 2.5 million barrels a day in 2010, dropping to less than a million a day for the next three years, the agency said.
Crude oil for August delivery rose as much as $1.48, or 1.1 percent, to $142.45 a barrel and was at $142.30 at 12:48 p.m. Singapore time in after-hours electronic trading on the New York Mercantile Exchange. Oil touched a record $143.67 on June 30.
Oil has climbed on growing concern that Israel may attack Iran to halt the country's nuclear program, although the U.S. State Department has said this is unlikely. The dollar's decline has also added to gains as investors seek inflation hedges.
Surging crude prices have contributed to rising global inflation rates. Indonesia's inflation accelerated to a 21-month high of 11.03 percent in June after the government increased fuel prices, the country's Central Statistics Bureau said yesterday.
