WebProNews

Though OPEC is nearly at capacity in oil production, prices have started to rise on refinery concerns.

The persistent problem driving oil and gasoline prices upward hasn't been a production issue. Instead, a lack of new refineries, unwanted in most places in the United States, has been the problem.

That concern has taken oil off of its three month low, as light crude rose to $48.97 at today's Mercantile close. In London, Brent crude closed at $49.34, a 25 cent increase.

According to Bloomberg, about 1 million barrels a day of refinery capacity will be added in 2005. Demand will pace at about 1.78 million barrels a day this year, according to an earlier International Energy Agency report.

The Saudi Arabian oil minister also commented that oil producers and consumers must work to remove the bottlenecks that have helped drive prices skyward.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.