Oil futures continue to rise

Oil prices were up again on Friday as West Texas Intermediate contracts for August rose 42 cents to $59.84 per barrel on the New York Mercantile Exchange after rising up to $60 per barrel earlier in the day.

WTI prices have risen 37 percent so far this year and are quoted at over $60 per barrel until June of next year.

Meanwhile, Brent crude on the International Petroleum Exchange rose 40 cents to $58.36 for August deliveries. It had reached $58.51 earlier in the day. Brent prices have risen around 47 percent on the year.

July gasoline futures were steady at $1.6587 per gallon in New York, below the April 4 high of $1.7491, but up 52 percent so far this year.

One analyst in New York said that the rising prices are driven by demand, particularly demand for finished petroleum products like gasoline, diesel and jet fuels, and heating oil.

Demand is up for these products not only in the United States, but also in Europe and China.

In Europe, diesel cars make up over half of new car sales, while in China distillate demand is over twice that for gasoline.

So far, high prices have not seemed to blunt demand, while oil traders think prices might go as high as $65 per barrel and that a decline back below $50 per barrel seems unlikely this year.

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