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Oil prices hovering close to $89 | |
(about 7 hours later) | |
Oil prices are hovering close to $89 a barrel as traders weigh up supply issues and the geopolitical tensions building in the Middle East. | |
US light, sweet crude, which hit the record $89 mark on Wednesday before easing, is up $1.01 at $88.41 while Brent Crude added 59 cents to $83.72. | |
Prices had pulled back in early trading after unexpectedly large gains in US oil and petrol inventories. | Prices had pulled back in early trading after unexpectedly large gains in US oil and petrol inventories. |
But simmering tensions along the Turkey-Iraq border kept prices aloft. | |
There are continuing concerns about tensions between Turkey and Kurdish rebels in Northern Iraq. | |
Turkey's parliament has approved a government plan to attack rebels and although military action is not considered imminent, it has raised fears of instability in the area. | |
Opec action? | Opec action? |
Comments by a member of the oil producers' cartel Opec that the group may now consider boosting output also helped the oil price pull back. | Comments by a member of the oil producers' cartel Opec that the group may now consider boosting output also helped the oil price pull back. |
Nigerian oil minister Odein Ajumogobia said Opec leaders could now meet as early as 17 November, three weeks ahead of their next planned meeting. | Nigerian oil minister Odein Ajumogobia said Opec leaders could now meet as early as 17 November, three weeks ahead of their next planned meeting. |
Oil traders fear that exports from northern Iraq could be hit | |
"We are still a month away and it depends what transpires before then," he added. | "We are still a month away and it depends what transpires before then," he added. |
Prices were also supported by figures showing a smaller-than-expected increase in US gas stocks last week. | |
Oil prices have quadrupled since 2002 because of strong 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 because of strong 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. |
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. |