Oil prices close at new highs on supply
Oil prices shot to record closing highs Friday on concern about the weak dollar and tight global energy supplies heading into the northern hemisphere winter.
A stronger-than-expected US labor report for October, when the economy added 166,000 jobs, also boosted sentiment, suggesting that demand for energy would remain brisk as US economic momentum appears healthy.
New York's main oil futures contract, light sweet crude for delivery in December, soared 4.40 dollars to a record closing high of 95.93 dollars a barrel.
On Thursday a barrel of light sweet crude soared to 96.05 dollars, close to its absolute record of 96.24 dollars struck the prior day.
In London Friday, Brent North Sea crude for December delivery for the first time breached the 92-dollar level, settling 2.36 dollars higher at 92.08 dollars a barrel.
"It is clear that the market has 100 dollars a barrel in its sights and this landmark is set to be breached before year-end," said Bank of Ireland analyst Paul Harris.
Traders took heart from the US jobs report. "The employment data is a stark reminder that the economy is a long way from recession," said Dick Green, an analyst at Briefing.com.
Earlier this week oil prices soared to dizzying heights on news of tumbling crude reserves in the United States, the world's biggest energy consumer.
The market was also roiled by geopolitical tensions between Turkey and crude producer Iraq.
Since the start of October, New York crude has gained approximately 13 dollars in value and London Brent about 12 dollars.
But prices ended Thursday with losses as traders took profits -- and tracked plunging global stock markets amid renewed worries over the extent of the US subprime or high-risk mortgage crisis.
"Oil was up (on Friday) after yesterday's subprime-related sell off," said Michael Davies at the Sucden brokerage in London.
"One other factor probably helping crude today is the weaker dollar, which makes crude relatively cheaper for foreign buyers," he said.
"The dollar has been under considerable pressure because of the weak US economic outlook, which has persuaded the Fed to cut rates."
On Friday, the single currency soared to a record peak of 1.4528 dollars, two days after the Fed cut US interest rates by a quarter-point to 4.50 percent.
Oil futures moved sharply higher on Wednesday after the US Department of Energy revealed that crude inventories had slumped 3.9 million barrels in the week ending October 26.
The figures shocked the market because analysts' consensus forecast had been for a modest gain of 400,000 barrels.
Industry experts are tracking global energy inventories because they are fearful of a supply crunch during the northern hemisphere winter months, when demand for heating fuel hits a peak.
Oil prices have jumped by some 50 percent over the past year although adjusted for inflation, they remain below levels reached after the 1979 Iranian revolution.
Current prices would have to go just above 100 dollars to reach outright, as well as nominal records, according to economists.
Meanwhile Friday, OPEC's basket price of crude oil, based on production in 12 different countries, hit a record 87.61 dollars, the cartel said.
The daily basket price jumped to 87.61 dollars on Thursday from 84.84 dollars the previous day, the Organization of the Petroleum Exporting Countries said in a statement.
The basket price is always published with a 24-hour delay and serves as the reference price for the cartel's output policies. Source
A stronger-than-expected US labor report for October, when the economy added 166,000 jobs, also boosted sentiment, suggesting that demand for energy would remain brisk as US economic momentum appears healthy.
New York's main oil futures contract, light sweet crude for delivery in December, soared 4.40 dollars to a record closing high of 95.93 dollars a barrel.
On Thursday a barrel of light sweet crude soared to 96.05 dollars, close to its absolute record of 96.24 dollars struck the prior day.
In London Friday, Brent North Sea crude for December delivery for the first time breached the 92-dollar level, settling 2.36 dollars higher at 92.08 dollars a barrel.
"It is clear that the market has 100 dollars a barrel in its sights and this landmark is set to be breached before year-end," said Bank of Ireland analyst Paul Harris.
Traders took heart from the US jobs report. "The employment data is a stark reminder that the economy is a long way from recession," said Dick Green, an analyst at Briefing.com.
Earlier this week oil prices soared to dizzying heights on news of tumbling crude reserves in the United States, the world's biggest energy consumer.
The market was also roiled by geopolitical tensions between Turkey and crude producer Iraq.
Since the start of October, New York crude has gained approximately 13 dollars in value and London Brent about 12 dollars.
But prices ended Thursday with losses as traders took profits -- and tracked plunging global stock markets amid renewed worries over the extent of the US subprime or high-risk mortgage crisis.
"Oil was up (on Friday) after yesterday's subprime-related sell off," said Michael Davies at the Sucden brokerage in London.
"One other factor probably helping crude today is the weaker dollar, which makes crude relatively cheaper for foreign buyers," he said.
"The dollar has been under considerable pressure because of the weak US economic outlook, which has persuaded the Fed to cut rates."
On Friday, the single currency soared to a record peak of 1.4528 dollars, two days after the Fed cut US interest rates by a quarter-point to 4.50 percent.
Oil futures moved sharply higher on Wednesday after the US Department of Energy revealed that crude inventories had slumped 3.9 million barrels in the week ending October 26.
The figures shocked the market because analysts' consensus forecast had been for a modest gain of 400,000 barrels.
Industry experts are tracking global energy inventories because they are fearful of a supply crunch during the northern hemisphere winter months, when demand for heating fuel hits a peak.
Oil prices have jumped by some 50 percent over the past year although adjusted for inflation, they remain below levels reached after the 1979 Iranian revolution.
Current prices would have to go just above 100 dollars to reach outright, as well as nominal records, according to economists.
Meanwhile Friday, OPEC's basket price of crude oil, based on production in 12 different countries, hit a record 87.61 dollars, the cartel said.
The daily basket price jumped to 87.61 dollars on Thursday from 84.84 dollars the previous day, the Organization of the Petroleum Exporting Countries said in a statement.
The basket price is always published with a 24-hour delay and serves as the reference price for the cartel's output policies. Source
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