Global oil prices hit 15-month high point

LONDON Global oil prices hit a 15-month high point on Thursday, boosted by signs of strengthening demand in top consumer the United States and ongoing supply fears linked to violence in Egypt, dealers said.

New York’s main contract, West Texas Intermediate for delivery in August, spiked to $107.45 a barrel -- a level last seen in late March 2012. It later stood at $106.02, down 50 cents from Wednesday’s closing level.

Brent North Sea crude for August rallied to $108.93 a barrel -- reaching a high last seen in early April 2013 -- before pulling back to $108.20, down 31 cents from Wednesday.

Crude futures had already scored multi-month highs on Wednesday after the US Energy Information Administration’s (EIA) weekly crude stockpiles data indicated a major pickup in energy demand.

The EIA said crude-oil stockpiles tumbled by 9.9 million barrels in the week ended July 5. That was more than triple the 2.9-million-barrel drop expected by analysts polled by Dow Jones Newswires, and followed the prior week’s drop of nearly 10 million barrels.

Added to the picture, traders remain deeply concerned over potential disruption in Middle East supply following the overthrow last week of Egypt’s president Mohamed Mursi.

“The spike in oil is driven by three things; optimism over improving economic conditions in the United States, fears of escalation in Egytian unrest, and lower US inventory levels,” said analyst Ishaq Siddiqi at trading firm ETX Capital.

What’s wrong with the global oil market?

Recent developments in domestic energy production have shifted the political debate about energy independence. Yet as the discussion focuses on finding a desirable mix of American energy sources, policy decisions must account for a global oil market distorted by the interventions of foreign governments.

Some may think this doesn’t matter because the domestic oil boom offers the United States a chance to reclaim the title of the world’s largest oil producer. Estimates suggest that there are more than seven billion barrels of oil in shale formations in the Dakotas and Montana alone. If more federal lands were opened to exploration, there is no doubt Americans could soon lose the need to import oil.

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Shell Expects Energy Demand To Double Over Next 50 Years

KUALA LUMPUR, July 3 (Bernama) -- Global oil and gas company, Shell, expects energy demand to double over the next 50 years, with the global population heading towards 9.5 billion mark by 2060 and emerging economies lifting millions of people out of poverty.

Shell International Chief Political Analyst Dr Choo-Oon Khong said the scenario highlighted the need for business and government to find new ways to collaborate, foster policies that promote the development and use of cleaner energy and improve energy efficiency.

"This scenario shows how the choices made by the government, business and individuals in the next few years will have a major impact on the way the future unfolds," he told a media briefing on Shell's New Lens Scenarios Report here Wednesday.

The report, which explored two possible ways the 21st century could unfold, described the scenarios as "Mountains" and "Oceans".

America's new energy resources - Global Energy

The Power Surge: Energy, Opportunity and the Battle for America’s Future. By Michael Levi.

ALL revolutions need their storytellers. So it is surprising that America’s energy revolution of the past few years has not had a serious scribe before now. Shale gas, billowing out of the bedrock in ever-increasing quantities, is becoming the most important factor in the drive to lessen America’s dependence on imported fuel.