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Oil prices climb above $89 level | |
(about 8 hours later) | |
Oil prices rose above $89 a barrel in New York for the first time after the dollar reached a new low against the euro and amid ongoing supply concerns. | |
Crude oil for November delivery settled at $89.47 a barrel in New York, after rising $2.07. Brent crude hit $84.6. | |
The price of oil has been hitting record levels in recent days amid tensions between Turkey and Kurdish rebels in northern Iraq. | |
And a lower dollar has made commodities a more attractive investment. | |
The dollar hit a record low against the euro on Thursday triggered by US economic data, adding to expectations that the US will lower interest rates. | |
Coupled with geopolitical tension in Turkey, this has pushed up oil prices with analysts now talking about the possibility of the commodity hitting the $100 mark. | |
The move by Turkey's parliament to approve a government plan to attack rebels has added to fears of instability in the area, though imminent military action is not expected. | |
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 | 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. | 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 a day from the beginning of next month, to cope with resilient global demand for oil. |