Oil hits record high above $US92/barrel
Pastor Dale Morgan
Oil hits record high above $US92/barrel*
From correspondents in New York
October 27, 2007 07:21am
Article from: Agence France-Presse
WORLD oil prices surged to historic highs today, breaching $US92 for the
first time in New York amid rising tension in crude-rich Iran and
tightening US energy supplies.
New York's main futures contract, light sweet crude for delivery in
December, soared to a record intraday high of $US92.22 per barrel before
settling at an all-time closing high of $US91.86, up $US1.40 on the day.
In London, Brent North Sea crude for December delivery struck an
all-time pinnacle of $US89.30 per barrel today. It later settled at
$US88.69, up $US1.21.
Crude futures have rocketed by about $US10 in a month and by $US30, or
50 per cent, in a year.
”Supply tightness and developments surrounding Iran remain the focus of
attention,'' Sucden analyst Michael Davies said today.
The US yesterday ratcheted up pressure on Iran over its nuclear drive
and alleged backing for terrorism with a raft of new sanctions against
the Islamic republic's military and banks.
Crude futures had leapt by more than $US3 yesterday in reaction to the
news, before extending their gains today.
The White House meanwhile rejected any parallels between its Iran
rhetoric and the run-up to the Iraq invasion of 2003, adding it had not
ruled out the use of force but was “very hopeful'' of avoiding war.
Sucden's Mr Davies meanwhile added that oil prices were winning support
from a weak dollar, which makes commodities priced in the US currency
cheaper for buyers using stronger units.
The US dollar slumped to a record low against the euro today after poor
US economic data heightened expectations of a fresh cut to US interest
rates next week, dealers said.
Others said oil prices were also being supported by OPEC's hesitance to
increase production and rising tensions elsewhere in the Middle East.
Iraqi ministers held crisis talks today seeking to persuade an
increasingly impatient Turkey against launching military strikes against
rebel Kurd bases in northern Iraq, which is an oil-producing region.
The talks broke up after 90 minutes, however, and it was not immediately
known if and when they would resume. But Iraqi defence ministry
spokesman Muhammed Askeri said the meeting had produced “positive'' results.
Another factor pushing up oil prices are tight energy supplies in the
US, the biggest consumer of energy.
The US Energy Information Administration (EIA) said on Wednesday
stockpiles of crude had plunged by 5.3 million barrels in the week
ending October 19. The market had expected a gain of 960,000 barrels.