Summer supply concerns oil markets

Recent refinery problems in Kansas and Texas have caused concern, and resulting rises in crude oil prices.

Refineries are already operating at near-capacity to meet current demand. Fears are that higher demand during the summer months might go unmet.

This worry was only amplified by the news that a Louisiana refinery owned by Conoco-Phillips would be closed for another week after it failed to restart after being closed for maintenance.

Gasoline stockpiles fell last week but are still 5 percent higher than a year ago. Oil prices hit $56 per barrel on Monday before dropping back again slightly.

Nymex WTI rose 23 cents to $55.62 a barrel for June deliveries by midmorning in London, and Brent rose 32 cents to $55.29, but at one point it had risen to $55.70.

WTI has risen for five days in a row, and gained over $4 per barrel in that time. This was its largest weekly gain in four months, nearing its all-time high of $58.28 per barrel, which it reached three weeks ago.

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