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Oil prices go past $69

05 June 2009 07:50 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil rose in New York, poised for a third weekly gain, after Goldman Sachs Group Inc. said prices may reach $85 a barrel by the end of the year as demand recovers and supplies shrink.
Oil surged to a seven-month high yesterday and gasoline climbed after the bank increased its year-end forecast from $65. The dollarâ€™s drop over the past six weeks has boosted crude prices as investors buy commodities as an inflation hedge.
Crude oil for July delivery rose as much as 71 cents, or 1 percent, to $69.52 a barrel on the New York Mercantile Exchange. It was at $69.38 a barrel at 12:55 p.m. Singapore time. Yesterday, the contract rose $2.69 to $68.81, the highest settlement since Nov. 4. Prices are up 4.6 percent this week.

Twenty-three of 34 analysts surveyed by Bloomberg News, or 68 percent, said futures will fall through June 12. Itâ€™s the most bearish response since February 2008. Seven respondents, or 21 percent, forecast that oil prices will rise and four said the market will be little changed. Last week, 50 percent of analysts said prices would decline.

Gasoline for July delivery rose 2.06 cents to $1.9827 a gallon at 12:12 p.m. Singapore time. Yesterday, it gained 6.05 cents, or 3.2 percent, to end the session at $1.9621, the highest settlement since Oct. 9.

Brent crude for July delivery rose as much as 59 cents, or 0.9 percent, to $69.30 a barrel on Londonâ€™s ICE Futures Europe exchange. It was at $69.17 a barrel at 12:56 p.m. Singapore time. Futures rose 4.3 percent to end yesterdayâ€™s session at $68.71 a barrel, the highest settlement since Oct. 21.