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ENERGY HIGHLIGHTS
By K. L. Newitt
Excerpts....
CrudeTops $51, Signaling More Pain At Pump - February 23, 2005
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The price of oil shot above $51 a barrel for the first time since late October probably condemning
motorists to another round of gasoline price increases.
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The benchmark U.S. grade of crude oil for March delivery soared $2.80, or 5.8%, to $51.15 on the New
York Mercantile Exchange. It was the commodity's biggest one-day percentage gain since June.
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The jump rekindled fears of a slowdown in U.S. economic growth and helped depress the stock market.
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Pump prices have been climbing in response to an earlier upswing in oil, which accounts for about
half the retail price of each gllon of gasoline.
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Seasonal maintenance at refineries, which crimps supplies as oil companies switch from winter to summer
blends of fuel, also has helped lift prices at the pump.
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Oil prices are trading at lofty levels, because global supplies of crude are stretched thin, while
the world's thirst for oil - especiall in the U.S. and China - keeps climbing steadily.
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Traders cited especially cold weather in the Northeast and in Europe, murmurs that the Oranization
of Petroleum Exporting Countries might further trim its production, and weakness of the U.S. dollar against other major currencies.
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OPEC's next scheduled meeting is March 16 in Iran.
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