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Oil resumes climb to $100

November 10, 2007 00:00:00


LONDON, Nov 9 (Reuters): Oil shrugged off US growth concerns to climb towards the $100 milestone Friday, fuelled by supply disruptions ahead of peak winter demand and tracking the dollar's dip to new lows.
US crude for December delivery rose 89 cents to $96.35 a barrel by 0920 GMT, off early-session highs of $96.48.
London Brent crude rose 64 cents to $93.43.
The dollar's slide to yet another record low against the euro Friday helped maintain the allure of oil for financial investors and speculators who have helped lift oil by 40 per cent since mid-August.
Oil had fallen Thursday, its second straight day of losses, after US Federal Reserve Chairman Ben Bernanke highlighted the twin threats of slower growth and inflation for the US economy, triggering profit-taking that pulled oil further back from its record high $98.62 earlier this week.
"Despite a 'shot across the bow' warning on growth coming from...the Fed chairman, commodity markets should be able to hold their own in the days ahead as they will need to see evidence of a demand slowdown before they correct themselves," said Edward Meir at MF Global.
"In energy's case, we seem to be regrouping... as we attempt yet again to take out the $100 mark on crude."
The loss of North Sea production due to a storm, coupled with a weeks-long outage at a diesel refinery unit in Texas, added to fears of a supply shortage, although supplies were not expected to be hit as hard as initially feared.
BP's Norwegian unit said it expected production at its 80,000 barrels per day Valhall oilfield to restart later on Friday, while Norway's StatoilHydro said it had restarted one field and would probably restart another.

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