Brent crude price soars to record high above 86 dollars
Friday, 26 October 2007
LONDON, Oct 25 (AFP): The price of Brent crude oil struck an historic peak of 86.28 dollars per barrel in trading here Thursday on renewed concerns over tight global energy supplies.
New York crude also surged as Turkey vowed to "purge" Kurdish rebels in the northern region of oil-rich Iraq, and following news that US energy stockpiles fell sharply last week.
After striking a record high, Brent North Sea crude for December delivery stood at 85.83 dollars per barrel, up 1.46 dollars from Wednesday's close.
New York's main futures contract, light sweet crude for delivery in December, soared by 1.48 dollars to 88.58 dollars Thursday after an intra-day peak of 88.99.
The US November contract had struck a historic high of 90.07 dollars last Friday owing to tensions in the Middle East.
On Thursday, Turkish President Abdullah Gul said his country was "running out of patience" with Iraq over Kurd rebels there and would "purge" bases across the border.
Gul made the comments ahead of the arrival of an Iraqi delegation in Ankara for talks on mounting tensions between the two countries.
"We respect the territorial integrity and unity of Iraq (but) we are running out of patience and we will not tolerate the use of Iraqi soil for terrorist activities," Gul told a gathering here of 12 Black Sea region countries.
"We are fully determined to take all necessary steps to end this threat," he said.
After sliding since Monday, oil prices began rebounding strongly Wednesday after the US government said that 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.
Inventories of US distillates, which include diesel and heating fuel, sank by 1.8 million barrels last week.
The data from the Department of Energy confounded market expectations for a rise of 275,000 barrels.
Heating fuel stocks are a key market focus because demand usually surges during the northern hemisphere winter.
Compared with a year ago, distillates stocks are 7.6 per cent lower and crude reserves are down 5.9 per cent.
Oil prices "kicked up after the stats came in," Bache Commodities broker Christopher Bellew said Thursday.
"That sparked off another round of fund buying which has contributed to the rapid rise we've seen."
New York crude also surged as Turkey vowed to "purge" Kurdish rebels in the northern region of oil-rich Iraq, and following news that US energy stockpiles fell sharply last week.
After striking a record high, Brent North Sea crude for December delivery stood at 85.83 dollars per barrel, up 1.46 dollars from Wednesday's close.
New York's main futures contract, light sweet crude for delivery in December, soared by 1.48 dollars to 88.58 dollars Thursday after an intra-day peak of 88.99.
The US November contract had struck a historic high of 90.07 dollars last Friday owing to tensions in the Middle East.
On Thursday, Turkish President Abdullah Gul said his country was "running out of patience" with Iraq over Kurd rebels there and would "purge" bases across the border.
Gul made the comments ahead of the arrival of an Iraqi delegation in Ankara for talks on mounting tensions between the two countries.
"We respect the territorial integrity and unity of Iraq (but) we are running out of patience and we will not tolerate the use of Iraqi soil for terrorist activities," Gul told a gathering here of 12 Black Sea region countries.
"We are fully determined to take all necessary steps to end this threat," he said.
After sliding since Monday, oil prices began rebounding strongly Wednesday after the US government said that 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.
Inventories of US distillates, which include diesel and heating fuel, sank by 1.8 million barrels last week.
The data from the Department of Energy confounded market expectations for a rise of 275,000 barrels.
Heating fuel stocks are a key market focus because demand usually surges during the northern hemisphere winter.
Compared with a year ago, distillates stocks are 7.6 per cent lower and crude reserves are down 5.9 per cent.
Oil prices "kicked up after the stats came in," Bache Commodities broker Christopher Bellew said Thursday.
"That sparked off another round of fund buying which has contributed to the rapid rise we've seen."