Oil breaks $100 as U.S. stockpiles drop

NEW YORK (Reuters) – Oil prices broke above $100 a barrel for the first time on Thursday after a U.S. government report showed a steep slide in crude inventories in the world’s biggest energy consumer.

The surge in oil prices into the triple digits has darkened the economic outlook in the United States, already battered by a housing crisis and credit crunch, and could threaten growth in big European energy consuming nations.


“Oil prices have been increasing significantly. Now if this high level of prices is maintained then it will have an impact on the economy,” European Commission spokeswoman Amelia Torres told a news briefing.

U.S. crude climbed 47 cents to $100.09 a barrel by 11:57 a.m. EST, breaking Wednesday’s record high of $100 even. Brent crude rose 45 cents to $98.29 a barrel.

Reuters