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Oil passes $98 on weaker dollar | |
(about 4 hours later) | |
The ever-weakening dollar and fresh worries about winter fuel supplies have sent US oil prices pass $98 a barrel. | |
With global crude prices further lifted by bad weather hitting North Sea oil rigs, US light crude touched as high as $98.62 in early Wednesday trading. | |
London Brent crude also increased, hitting a all-time peak of $95.19. | |
The weaker dollar has been driving up oil prices because some investors have been using the commodity as an alternative to holding dollars. | The weaker dollar has been driving up oil prices because some investors have been using the commodity as an alternative to holding dollars. |
On the other hand, it makes oil relatively cheaper for anybody outside the US. | On the other hand, it makes oil relatively cheaper for anybody outside the US. |
Evacuations | |
US light crude later pulled back to $98.25 by mid-morning trading in Europe, while Brent slid to $94.89. | |
However, the prices were still up on Tuesday's closes. | |
Analysts say that $100-a-barrel oil is inevitable. | |
"We're going to get $100 before too long," said Kevin Norrish of Barclays Capital. | |
"I think we'll get there," said Dariusz Kowalczyk at CFC Seymour. "The factors that have been driving the recent trend are still in place." | "I think we'll get there," said Dariusz Kowalczyk at CFC Seymour. "The factors that have been driving the recent trend are still in place." |
Adjusting for inflation, US light crude's record peak of $101.70 came in 1980 against a backdrop of war between Iraq and Iran. | |
Predicted storms in the North Sea have seen a number of producers evacuate their facilities, such as BP and ConocoPhillips. |