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| Oil price hits another new record | |
| (about 3 hours later) | |
| The price of crude oil briefly reached another record high on Thursday despite an increase in Opec output quotas. | |
| US light, sweet crude hit $80.20, two cents higher than the price it touched on Wednesday but fell back to $79.62 - down 29 cents on the day. | |
| Meanwhile Brent crude for October fell 32 cents to $77.36. | |
| Falling oil stocks in the US remain a concern, but a hurricane in the Gulf of Mexico that threatened facilities there is now expected to ease. | Falling oil stocks in the US remain a concern, but a hurricane in the Gulf of Mexico that threatened facilities there is now expected to ease. |
| Oil prices have risen 30% this year and are four times their 2002 level. | Oil prices have risen 30% this year and are four times their 2002 level. |
| When inflation is taken into account, current prices are still some way below the all-time high of about $90-$100 a barrel reached in 1979. | When inflation is taken into account, current prices are still some way below the all-time high of about $90-$100 a barrel reached in 1979. |
| That year, output from Iran - a key Opec member - collapsed following an Islamic revolution. The next year, war broke out between Iran and Iraq, another Opec member. | |
| Breakneck growth | Breakneck growth |
| Still, analysts warn that the present situation is driven more by changes in the world economy, and less by shock events. | Still, analysts warn that the present situation is driven more by changes in the world economy, and less by shock events. |
| Hasan Qabazard, director of Opec's research division, said a spread of factors had caused the spike in oil prices. | Hasan Qabazard, director of Opec's research division, said a spread of factors had caused the spike in oil prices. |
| "We have a storm working its way to American facilities. We have an economic crisis, so many things are affecting... prices." Mr Qabazard said. | "We have a storm working its way to American facilities. We have an economic crisis, so many things are affecting... prices." Mr Qabazard said. |
| Demand has soared in recent years, as China and India, in particular, have ramped up the fast-growing economies of their massive countries. | Demand has soared in recent years, as China and India, in particular, have ramped up the fast-growing economies of their massive countries. |
| Production and refining capacity have struggled to keep pace, while heavy speculation in contracts for future oil deliveries has also helped keep prices high. | Production and refining capacity have struggled to keep pace, while heavy speculation in contracts for future oil deliveries has also helped keep prices high. |
| The most recent move by Opec - an increase of 500,000 barrels a day in the 12-nation group's quota - was little more than an "underwhelming gesture", said National Australia Bank analyst Gerard Burg. | The most recent move by Opec - an increase of 500,000 barrels a day in the 12-nation group's quota - was little more than an "underwhelming gesture", said National Australia Bank analyst Gerard Burg. |
| Opec members are already pumping about a million barrels a day more than quota. | Opec members are already pumping about a million barrels a day more than quota. |