Oil hits record over $101 on OPEC, funds

NEW YORK, Feb 20 (Reuters) – Oil vaulted to a record over $101 a barrel on Wednesday as OPEC supply concerns and hedge fund buying countered worries about the U.S. economy.

U.S. crude ended up 73 cents at $100.74 barrel, the top settlement on record, after hitting an all-time high of $101.32 a barrel earlier in the day. London Brent settled 14 cents lower at $98.42 a barrel.


… Analysts said a rush of buying by funds seeking a hedge against inflation helped push oil to new highs, with further support coming from supply uncertainty from OPEC members Nigeria and Venezuela.

“Traders are going into the oil market because it’s what is causing the inflation. and those assets are most likely to appreciate,” said Rob Kurzatkowski, futures analyst with optionsXpress.

“It has almost become a self-fulfilling prophecy with crude — everyone is worried about inflation so they dump their money into crude oil which is causing inflation to ramp up,” he said.

Reuters