Oil prices sizzle to new highs on geopolitical jitters

NEW YORK (AFP) – Global oil prices soared to bold new highs Thursday amid US supply concerns and geopolitical strains in the Middle East, including Turkey’s military threat in Iraq and fresh US sanctions on Iran.

New York’s main futures contract, light sweet crude for delivery in December, jumped by 3.36 dollars per barrel to close at a record 90.46 dollars, topping the prior record set Friday at 90.07.
Earlier the New York benchmark contract climbed to an all-time peak of 90.60 dollars.

In London, Brent North Sea crude for December delivery breached record after record, surpassing 86 dollars, then 87 dollars, before settling up 3.11 dollars at 87.48. It reached a new high of 87.59 dollars in intraday trade.

“It’s a combination of a lot of factors that have been pushing this market so much higher,” said Phil Flynn, an analyst at Alaron Trading.

“It’s all happening at the same time: new concerns with Washington/Iran and new concerns that OPEC isn’t going to be able to increase production to meet demand.”

Oil prices bounded higher as Turkey threatened military action against Kurdish rebels in the northern region of oil-rich Iraq. 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.

AFP