Oil Rises Above $142 On Supply Worries
KUALA LUMPUR, Malaysia — The price of oil is back up above $142 a barrel Wednesday in Asia. Analysts see no quick end to the spikes because of tight supply and tension in the Middle East.
The price topped $143 a barrel Tuesday before settling back to just under $141.
Analyst Victor Shum says until global demand eases, the price of oil is going to keep bubbling up into “bullish” territory. A report by the International Energy Agency sees no drop in the overall global demand despite the price runup and an actual drop in demand for oil in the U.S. and Europe.
The agency says developing nations in Asia, the Middle East and Latin America will account for nearly 90 percent of the demand growth over the next five years.
The market is also being spooked by persistent talk of attacks on Iran. It’s the world’s fourth-largest oil producer and guards the vital Persian Gulf straits through which 40 percent of the world’s oil shipped by tankers flows.