Crude oil tops $57 for first time since April

CRUDE oil topped $57 a barrel in New York for the first time since April over concern refiners may struggle to meet a fourth-quarter peak in demand for winter fuels.

The US and Britain shut their missions in Lagos, Nigeria, yesterday after a security threat. The country’s oil is favoured for making heating oil and diesel by US refiners that must produce as much as they can to replenish stockpiles. The extra crude that OPEC can pump is of lower-quality grades that aren’t suitable for making these fuels, known as distillates.

Crude oil for July delivery rose 85 cents, or 1.5%, to $57.43 a barrel on the New York Mercantile Exchange at 12.46pm, London time, less than $1 from a record $58.28 on April 4. Oil, up 49% from a year ago, has traded at or above $57 on eight days since the futures contract was introduced in 1983.

“We are extremely aware that refineries are running very close to the edge and the question is whether we are headed for an accident,” which could send oil to a record, said Deborah White, an economist at Societe Generale SA in Paris.

Brent crude for August settlement climbed 75 cents to $56.97 on London’s International Petroleum Exchange, also less than a dollar from its record of $57.65 on April 4.