Crude prices perched at $53 mark
Singapore: Crude futures rose further following the previous day's record surge of $1.50, as active fund buying and supply fears continued to drive the market.

On the New York Mercantile Exchange, light, sweet crude for April delivery rose five cents to $53.62 a barrel as of mid-afternoon in Asia. Heating oil prices fell by less than a cent to $1.4855 a gallon (3.8 litres).

Analysts said the surge in prices was "not consistent with supply and demand fundamentals." The high prices have been boosted by rapidly rising demand, particularly in China but also in the United States, that is putting pressure on the world's oil producers to pump some 84 million barrels a day while maintaining an output cushion in the event of any unexpected disruption.

China's oil thirst is expected to grow by 10 per cent in 2005 to about 7 million barrels a day, according to PFC Energy, a Washington-based consultant. US demand is forecast to grow this year by about 1 per cent to 20.8 million barrels.

The price surge was also supported by comments from OPEC official Adnan Shihab-Eldin of Kuwait, who said yesterday that a major supply disruption could send crude prices to $80 per barrel.
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