Price of oil surges above $67 a barrel

| 3/30/2006

The price of oil briefly jumped to more than $67 per barrel in midday trading on the New York Mercantile Exchange Thursday, March 30, before settling back down around $66.85 per barrel.

Reuters reported that analysts blamed the price hike on news that Iran had rejected demands from the United Nations Security Council that it halt its uranium enrichment program.

Analysts also said the usual culprits of increasing demand from China and supply disruptions in Nigeria and Iraq have fueled gains in oil prices since the first of the year.

Goldman Sachs, a market analysis firm, predicted that crude oil prices would average about $69.50 per barrel for the rest of 2006, according to Reuters.

Oil has been above $60 for more than a month, boosted by further attacks on Nigeria’s pipelines in early March.