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Brent would be most affected by a disruption in the Middle East because it is used to price seagoing crude that competes with crude shipped through the Persian Gulf. Also Brent, which is priced in London, has been pushed higher by lower oil production in the North Sea. Further increases are possible over the next few weeks, a development drivers are unlikely to welcome. "It's going to translate to upward pressure at the pump," said Jim Ritterbusch, an independent oil trader and analyst. But the rise won't likely be dramatic -- or long-lived. The growth in global demand for oil has weakened in recent months as the economies of the West have sputtered and China's economic growth has slowed. And oil supplies remain high because output has risen in Saudi Arabia, Libya, the U.S. and elsewhere. "There's stagnant demand, and lots of supply," said Judith Dwarkin, chief energy economist at ITG Investment Research. That leads analysts to think that prices won't skyrocket unless supplies are disrupted by Middle East violence or a hurricane in the Gulf of Mexico. Kloza doesn't see gasoline rising much beyond $3.50 for the rest of the summer. After that, he says, gasoline prices could fall sharply as supplies increase and refiners switch to cheaper winter blends of fuel. In other energy trading in New York, natural gas rose 2.6 cents to close at $2.935 per thousand cubic feet. Heating oil rose 7 cents to close at $2.95 per gallon and wholesale gasoline rose 6 cents to close at $2.94 per gallon.
[Associated
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