Prices near record highs as OPEC blames lack of refineries

On Friday, Brent crude oil for August delivery on the International Petroleum Exchange was up $1.16 to $57.38 per barrel, while July West Texas Intermediate contracts on the New York Mercantile Exchange advanced $1.37 to $57.95 per barrel, both near record highs.

OPEC, which has long claimed that the falling value of the dollar, the actions of speculators, and various geopolitical issues are the causes of high oil prices, it now says that a worldwide lack of capacity in oil refineries is the main factor causing crude oil prices to rise.

The prices of finished petroleum products have risen faster than crude oil prices, and some analysis holds that the tight supply is what is dragging crude prices up. US gasoline futures have gone up almost 50 percent since December and heating oil futures on US markets have risen 34 percent in the same period of time, and are up more than 70 percent in the past year.

Meanwhile, prices for Brent crude are up 41 percent and West Texas Intermediate prices have gained 31 percent. This has resulted in a rise in refiner margins to about $10 per barrel, and with capacity expected to remain lower than demand those kind of profits to refiners are not likely to narrow soon.