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Oil Prices Hit 2.5-Year High; BP To Resume Gulf Drilling

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Oil Prices Hit 2.5-Year High; BP To Resume Gulf Drilling

Oil Prices Hit 2.5-Year High; BP To Resume Gulf Drilling

Oil Prices Hit 2.5-Year High; BP To Resume Gulf Drilling

  • Download
  • <iframe src="https://www.npr.org/player/embed/135106117/135106092" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

Crude oil is trading at more than $108 a barrel, the highest price since the financial crisis hit. Analysts say oil is up because of fears about Libya, and also Iran's refusal to support an increase in production. In other oil news, BP plans to start drilling again in the Gulf of Mexico.

RENEE MONTAGNE, host:

NPR's business news starts with oil prices soaring to a two-and-a-half year high.

(Soundbite of music)

MONTAGNE: Crude oil is trading at more than $108 a barrel. That's the highest price since the financial crisis. Analysts say oil is up because of fears about Libya and also Iran's refusal to support an increase in production. Add to that, concerns that the demand for oil will rise as economies strengthen.

On Friday, the U.S reported a jump in job growth.

In other oil news, BP plans to start drilling again in the Gulf of Mexico. The New York Times reported yesterday that the company has asked U.S. regulators for permission to resume deepwater drilling at 10 wells, wells where drilling was underway before last year's disastrous blowout.

And today, British newspapers are reporting the U.S. has given BP permission and drilling could start as early as July.

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