Conoco Increases Price For Top U.S. Crude
Undated (AP) _ Conoco Inc. said Thursday it is raising the price it will pay for the major grade of U.S. crude oil and 11 other blends, effective Oct. 1, to reflect the recent rebound in oil prices. Analysts said the increase was unlikely to raise retail gasoline prices.
Conoco, a division of Du Pont Co. and the seventh-largest oil company in the country on the basis of sales, said it was increasing the price it will pay for West Texas Intermediate crude to $27.60 a barrel, up 45 cents from the price it has posted for the past month.
Tom DeCola, a Conoco spokesman in Houston, also said the company is increasing the price it will pay for 11 other grades from 35 cents to 60 cents a barrel to ″reflect our assessment of current market conditions.″
Analysts have attributed the recent rise in open-market oil prices to unseasonally low levels of supplies, rather than increased demand, and say they do not expect a sustained rise in prices.
A major factor holding down supplies has been reduced production by members of the Organization of Petroleum Exporting Countries.
In addition, industry sources in Europe said Thursday that the Soviet Union has informed customers outside the Communist Bloc that it is delaying or canceling shipments scheduled for October of crude oil and certain refined products.
On the New York Mercantile Exchange, West Texas Intermediate crude for November delivery shot up 48 cents Thursday to close at $28.90 a barrel.
Just last January, West Texas Intermediate was being traded on the exchange for around $25 a barrel. And by April, West Texas Intermediate had recovered and was flirting with $30 a barrel before heading lower again.