Petrol prices rise forseventh time this month

11th October 2004, Comments 0 comments

12 October 2004, MADRID - Petrol prices in Spain rose for the seventh time this month Tuesday amid a background of surging international oil prices, the Ministry of Industry said.

12 October 2004

MADRID - Petrol prices in Spain rose for the seventh time this month Tuesday amid a background of surging international oil prices, the Ministry of Industry said.

The price of a litre of diesel oil increased nine cents to 83.7 cents.

Non-leaded petrol went up by eight centimes, bringing the price to 93 cents per litre.

Four-star petrol rose by six centimes per litre since Friday.

Meanwhile, oil prices surged to fresh record highs on the London markets amid continued worries over possible global supply shortages.

Brent crude touched the USD 51-a-barrel mark for the first time.

The increase extends a rally that has already lifted US oil prices by more than 60 percent since the start of the year.

Analysts blame soaring demand from the US and China, coupled with supply disruptions in oil-producing regions.

A lack of refining capacity in industrialised nations and a seasonal rise in demand for heating oil ahead of the northern hemisphere winter are also underpinning the market.

The latest spike in prices comes despite fresh pledges over the weekend from Saudi Arabia and Kuwait, both leading members of oil producers' cartel Opec, to raise output levels in order to keep the markets well supplied.

It reflects a shortfall in supplies in the Gulf of Mexico, where engineers are still working to repair damage caused by Hurricane Ivan in late September.

There are also fears that production in Nigeria could be disrupted by a four-day general strike which began Monday, although oil companies have said output should continue as normal.

Economists are becoming increasingly worried that higher energy costs could seriously dent global economic growth in the months ahead.

US Treasury Secretary John Snow said at the weekend that soaring oil prices were "creating headwinds for the otherwise very strong economy".

Last week, a senior official at the International Monetary Fund (IMF) said soaring oil prices had undermined its global growth forecasts.

However, when adjusted for inflation, oil prices remain below the all-time peak they hit in the wake of the Islamic revolution in Iran in 1979.

Then, one barrel of oil was worth the equivalent of USD 80 in today's terms.

[Copyright EFE with Expatica]

Subject: Spanish news

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