Oil price hits record high on Iran tensions, supply concerns
Sunday, 28 October 2007
NEW YORK, Oct 27 (AFP): World oil prices surged to historic highs Friday, breaching 92 dollars 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 92.22 dollars per barrel before settling at an all-time closing high of 91.86 dollars, up 1.40 dollars on the day.
In London, Brent North Sea crude for December delivery struck an all- time pinnacle of 89.30 dollars per barrel Friday. It later settled at 88.69 dollars, up 1.21 dollars.
Crude futures have rocketed by about 10 dollars in a month and by 30 dollars, or 50 per cent, in a year.
"Supply tightness and developments surrounding Iran remain the focus of attention," Sucden analyst Michael Davies said Friday.
The United States Thursday 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 three dollars Thursday in reaction to the news, before extending their gains Friday. 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.
New York's main futures contract, light sweet crude for delivery in December, soared to a record intraday high of 92.22 dollars per barrel before settling at an all-time closing high of 91.86 dollars, up 1.40 dollars on the day.
In London, Brent North Sea crude for December delivery struck an all- time pinnacle of 89.30 dollars per barrel Friday. It later settled at 88.69 dollars, up 1.21 dollars.
Crude futures have rocketed by about 10 dollars in a month and by 30 dollars, or 50 per cent, in a year.
"Supply tightness and developments surrounding Iran remain the focus of attention," Sucden analyst Michael Davies said Friday.
The United States Thursday 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 three dollars Thursday in reaction to the news, before extending their gains Friday. 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.