Crude futures rose back to record high area Tuesday after the International Energy Agency (IEA) predicted a tight balance between oil supply and demand.
Light, sweet crude for August delivery hit 143.33 U.S. dollars a barrel before pulling back and settling 97 cents up at 140.97 dollars a barrel on the New York Mercantile Exchange. Oil reached an all-time peak of 143.67 dollars a barrel on Monday.
IEA issued a report Tuesday forecasting that the tight global crude supply is unlikely to ease despite record prices and drop in demand in industrialized countries. The agency compared the current high energy prices to those in the 1970s and 1980s, calling it "the third oil price shock."
U.S. Treasury Secretary Henry Paulson echoed IEA's forecast in Berlin, saying that there were no "obvious short-term solutions" to hiking oil prices.
Also the concern over potential conflict between Israel and Iran continued to weigh on the market on Tuesday and helped to push up the price.
OPEC president Chakib Khelil said on Tuesday the oil cartel was concerned about future demand, hinting that the cartel is in no mood to further increase output.
In London, Brent crude for August delivery rose 84 cents to settle at 140.67 dollars a barrel on the ICE Futures Exchange.
Source:Xinhua
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