Title : New York oil price passes record US$90
By :
Date : 19 Oct 2007 0713 hrs (GMT + 8hrs)
NEW YORK: New York crude oil prices surpassed a record 90 dollars a
barrel in after-hours trading on Thursday following increased
tensions between Turkey's government and Kurdish rebels in northern
Iraq.
Traders said a weak US dollar and global supply jitters had also
stoked the price surge.
The price gains in after-hours trading came after New York's main
oil futures contract, light sweet crude for delivery in November,
had jumped 2.07 dollars to a record close of 89.47 dollars a
barrel.
In electronic trade after the market close, the benchmark contract
spiked to an all-time high of 90.02 dollars.
London prices also pushed higher in after-hours trading, as Brent
North Sea crude for December delivery soared to 84.88 dollars after
the contract had earlier settled 1.47 dollars higher at 84.60
dollars.
Oil prices have pushed higher this week amid geopolitical angst
related to the Turkey-Iraq border and a weakening dollar, which
makes dollar-priced commodities such as oil cheaper for buyers with
stronger currencies and therefore lifts crude demand.
The euro earlier hit a record high of 1.4310 dollars on
Thursday.
"The issue seems no longer to be whether oil will reach 100 dollars
per barrel, but when," said Barclays Capital analyst Kevin
Norrish.
Turkey said Thursday it would pursue diplomacy to defuse a crisis
over Kurdish rebels in northern Iraq as Baghdad made fresh appeals
to dissuade its neighbour from military action.
The Turkish parliament Wednesday approved a motion authorizing
military strikes for a one-year period against the Kurdistan
Workers' Party (PKK), which is accused of using bases in northern
Iraq for attacks on targets across the border in Turkey.
Oil prices streaked higher amid fears of a potential
conflict.
"Once the furore has settled down, the oil market as a whole can
get on the job of working out whether supply and demand dynamics
mean that long-term prices should have two or three digits."
Alaron Trading analyst Phil Flynn predicted prices could go even
higher.
"The next target should be roughly four dollars above that level,
somewhere around 93 dollars a barrel," he said.
"It's hard to pick a top in a raging bull market but it's possible
that we are close. Volatility will be huge," he said.
Analysts said traders were closely monitoring tensions between
Turkey and Iraq.
Traders are also concerned about tight global energy supplies,
particularly ahead of the northern hemisphere winter when demand
for heating fuel peaks.
A weekly US snapshot on energy stockpiles on Wednesday did little
to allay such worries, traders said.
- AFP/so
