Oil nears $100 mark as crude reaches yet another record

Oil prices moved a step closer to the $100 a barrel mark yesterday as supply disruptions in Mexico, the weak dollar and the threat of attacks on oil facilities in Sudan pushed crude to another record high.

US light crude soared to $93.20 a barrel before settling at $92.59, up 73 cents. In London, Brent crude reached a milestone by powering through the $90 mark. It was trading at $89.57 a barrel last night, up 88 cents.


Dealers said investors were increasingly focused on $100 a barrel and added that a widely expected cut in interest rates by the US Federal Reserve tomorrow could fuel yet more buying given the prospect of further falls in the US dollar. Dollar weakness has boosted the price of dollar-denominated commodities and helped oil to surge by more than a third since the middle of August. It has risen more than 50 per cent this year.

Yesterday, analysts again blamed continuing tension over potential conflict in Iran for the strength of oil given fears of a supply crunch ahead of the seasonal upswing in demand next month.

Times of London