Demand, politics keep oil prices high

Brent crude oil August contracts added 69 cents to $74.77 per barrel on the International Petroleum Exchange in London on Friday, a gain of 1.6 percent during the week.  West Texas Intermediate crude set a new record high prices early in the day, reaching $75.78 per barrel, but by late morning it had retreated to $75.40 per barrel, still ahead by 26 cents.  In early afternoon trade on the New York Mercantile Exchange, however, WTI had declined to $74.75, down 39 cents from Thursday’s close.

Analysts said that oil prices were being supported by increased demand, reported by the US energy department to be up over last year’s levels for the seventh straight four-week period as high pump prices did not seem to be discouraging US drivers.  Geopolitical concerns in both Iran and Korea were also cited as factors in keeping oil prices up.