March 8, 2005 3:30 PM, EST

Crude Oil Nears Record, Closes at $54.59

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rude oil futures rose to near an all-time high Tuesday, closing at $54.59 a barrel, Bloomberg reported.

Light sweet crude oil for April delivery rose 70 cents a barrel to close at $54.59 after hitting a high of $55.15 in intraday trading, Bloomberg said. The all-time high closing price of $55.67 was set last Oct. 25.

Analysts speculated that OPEC ministers may do little to rein in the price when they meet March 16 in Iran to discuss second-quarter output, Bloomberg said.

Futures had touched a four-month intraday high of $55.20 a barrel last Thursday before settling that day to close at $53.57.

Meanwhile the Energy Department Tuesday raised its estimate for crude oil prices this year by 7.5% to an average of almost $49 a barrel, on signs supplies won't keep pace with demand, Bloomberg reported.

And in London, the April North Sea Brent crude-oil futures contract increased to close at $53 a barrel on the International Petroleum Exchange.

The London intraday price reached $53.15, the highest since that contract was introduced in 1988, Bloomberg said.