Oil prices hit 60 dollars a barrel

Oil prices were on the rise again Friday, hitting $60 per barrel for a bit before easing back a little before the close.

One New York analyst said that the price rises are being driven by demand, especially the unusually high demand for finished petroleum products like gasoline, diesel and jet fuels, and heating oil.

Demand is up for these products in the United States, China, and Europe. In China, distillate demand is more than twice as high as demand for gasoline. In Europe, diesel cars account for over half of new car sales.

So far, high prices have not seemed to blunt demand, while oil traders believe that prices might go as high as $65 per barrel and that a decline back below $50 per barrel seems unlikely this year.

West Texas Intermediate contracts for August were up 42 cents to $59.84 per barrel on the New York Mercantile Exchange after hitting $60 per barrel earlier in the day.

Meanwhile, Brent crude on the International Petroleum Exchange gained 40 cents to $58.36 for August deliveries, after having reached $58.51 earlier.

WTI prices have risen 37 percent since the beginning of the year and are quoted at over $60 per barrel until June of next year. Brent prices have gone up approximately 47 percent this year.

July gasoline futures were steady at $1.6587 per gallon in New York on Friday, below the April 4 high of $1.7491 but up 52 percent so far this year.

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