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Oil Prices Skyrocket to $55.70 in Midday Trading

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Light sweet crude jumped a 1.50 today to $55.70 a barrel in midday trading and Brent crude jumped $1.32 to $55.33.

While prices still haven’t matched the high of $58.28 earlier this month, it’s not out of the realm of possibility prices will continue to climb.

Traders are clearly nervous about supplies, particularly with regard to the fresh terrorist attacks in Saudi Arabia in which two terrorists and two police officers were killed. Even though inventories are high, fears continue.

Gasoline is also up trading at $1.65 right now and heating oil is up too. The United States reported on Wednesday that gasoline reserves were much lower than anticipated dropping over a million barrels more than expected.

The big problem driving prices on fuel in the U.S. right remains refinery troubles. With several refineries going down this year and ConocoPhillips’ Louisiana refinery down another week, gasoline supplies have dwindled even though refineries are running at near capacity. This U.S. hasn’t built a new refinery in decades.

The United States House of Representatives has also cleared President Bush’s energy program to the Senate. This plan calls for many changes including increases in production various types of energy including coal, nuclear power, natural gas and crude oil.

Much of the crude oil could come from ANWR even and the state of Florida has expressed worries about drilling off their coast in protected areas if the ANWR measure goes through.

John Stith is a staff writer for WebProNews covering technology and business.

Oil Prices Skyrocket to $55.70 in Midday Trading
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