This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7048291.stm
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Oil steadies near record levels | Oil steadies near record levels |
| (about 3 hours later) | |
| Oil prices have steadied after six days of record highs - spurred by supply concerns and tensions between Turkey and Kurdish rebels in northern Iraq. | Oil prices have steadied after six days of record highs - spurred by supply concerns and tensions between Turkey and Kurdish rebels in northern Iraq. |
| US light, sweet crude was trading at $87.16 a barrel - down from Tuesday's record of $88.20 - while Brent crude was 35 cents lower at $83.20. | |
| The price surge followed reports that Turkish forces had shelled an Iraqi border village in recent days. | The price surge followed reports that Turkish forces had shelled an Iraqi border village in recent days. |
| With global supplies tight, any threat to oil output is likely to hit prices. | With global supplies tight, any threat to oil output is likely to hit prices. |
| Economic impact | Economic impact |
| The Turkish government is preparing a motion seeking parliamentary approval for a military incursion into northern Iraq after 13 Turkish soldiers were killed close to the Iraqi border. | The Turkish government is preparing a motion seeking parliamentary approval for a military incursion into northern Iraq after 13 Turkish soldiers were killed close to the Iraqi border. |
| Ankara estimates that 3,500 Kurdistan Workers' Party (KWP) rebels - who want to see the establishment of an independent Kurdish homeland - are based across the border in Iraq. | Ankara estimates that 3,500 Kurdistan Workers' Party (KWP) rebels - who want to see the establishment of an independent Kurdish homeland - are based across the border in Iraq. |
| The market has not been as worried over a geopolitical issue since last July when Israel and Hezbollah guerrillas battled in Lebanon, said Steve Rowles, an analyst with CFC Seymour in Hong Kong. | The market has not been as worried over a geopolitical issue since last July when Israel and Hezbollah guerrillas battled in Lebanon, said Steve Rowles, an analyst with CFC Seymour in Hong Kong. |
| He predicted that "overall the tensions will eventually subside," saying that Iraq "isn't the oil producer that it once was.". | He predicted that "overall the tensions will eventually subside," saying that Iraq "isn't the oil producer that it once was.". |
| Oil prices have quadrupled since 2002 due to demand from fast-growing economies such as China and India, allied to instability in oil-producing nations in the Middle East and Africa. | Oil prices have quadrupled since 2002 due to demand from fast-growing economies such as China and India, allied to instability in oil-producing nations in the Middle East and Africa. |
| The cost of oil is still below the inflation-adjusted level of about $90 a barrel seen in 1980 when spiralling prices helped contribute to a recession in the US. | The cost of oil is still below the inflation-adjusted level of about $90 a barrel seen in 1980 when spiralling prices helped contribute to a recession in the US. |
| Opec output | Opec output |
| Analysts are divided over where prices will head next, although most believe the upward pressure on prices - driven by concern about the availability of supplies - is set to continue. | Analysts are divided over where prices will head next, although most believe the upward pressure on prices - driven by concern about the availability of supplies - is set to continue. |
| Further pressure on supplies came with news that oil producers outside the Opec cartel were to reduce output by about 110,000 a day. | Further pressure on supplies came with news that oil producers outside the Opec cartel were to reduce output by about 110,000 a day. |
| Last month, Opec said that it would be boosting its production by 500,000 barrels per day from the beginning of next month to cope with resilient global demand for oil. | Last month, Opec said that it would be boosting its production by 500,000 barrels per day from the beginning of next month to cope with resilient global demand for oil. |
| However, it has since added that demand for oil this winter in the US - the world's largest consumer of heating oil - will be stronger than previously thought. | However, it has since added that demand for oil this winter in the US - the world's largest consumer of heating oil - will be stronger than previously thought. |