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Oil ends above $80 for first time | |
(about 4 hours later) | |
The price of crude oil closed above $80 a barrel for the first time on Thursday, as a hurricane in Texas raised supply concerns. | |
US light, sweet crude hit $80.20, two cents higher than the price it touched on Wednesday, though fell back to end the day up 18 cents at $80.02. | |
Meanwhile Brent crude for October fell 28 cents to $77.40. | |
Hurricane Humberto cut power to several refineries, adding to concerns about falling oil stocks. | |
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. | 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. |