25 February 2011 17:46 [Source: ICIS news]
LONDON (ICIS)--A strong crude oil market sustaining rising prices is likely here to stay, petroleum industry consultants at Purvin & Gertz said on Friday.
"Demand is still growing despite high prices, with supply following the same sentiment," said Blake Eskew, senior vice president at the consultancy, speaking on the sidelines of the 15th ICIS World Base Oils and Lubricants Conference in London.
The effects of the higher energy prices are being seen throughout the entire petroleum complex, causing elevated differentials in the new high-priced world, Eskew added.
"Production capacity is sufficient, but the capacity cusion is falling," he said.
"The market is very concerned about any gap that might develop from a disruptive supply situation, such as the recent events in Libya," Eskew added.
The ICIS World Base Oils and Lubricants Conference began on Thursday and runs through Friday.
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