Oil rallies 6pc on demand fears

Crude oil rose more than 6 per cent last week, the biggest rally in three months, on concern US gasoline demand will outpace domestic production and imports during the summer, when consumption peaks.

Crude oil for June delivery rose US$1.19, or 2.2 per cent, to close at US$55.39 a barrel on the New York Mercantile Exchange. Prices are up 51 per cent from a year ago. Crude oil futures have gained 28 per cent this year.

Prices touched a record US$58.28 on April 4 and are likely to slow growth, reducing disposable income and profits.

- BLOOMBERG, STAFF REPORTER