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/7168664.stm

The article has changed 10 times. There is an RSS feed of changes available.

Version 2 Version 3
Oil price at record $100 a barrel Oil price at record $100 a barrel
(20 minutes later)
Oil has traded at $100 a barrel for the first time.Oil has traded at $100 a barrel for the first time.
Violence in Nigeria and Algeria, the weak dollar and cold weather have all raised prices after the New Year break. Violence in Nigeria, Algeria and Pakistan, the weak US dollar and the threat of cold weather have all raised prices after the new year break.
Reaction to the assassination of the former Pakistani prime minister, Benazir Bhuto, also contributed to the rising prices. Light sweet crude rose $4.02 to $100 a barrel in New York, prompting a drop in shares and a surge in gold prices.
Light sweet crude for delivery in February rose $4.02 to trade at $100 a barrel on the New York Mercantile Exchange (Nymex). There are concerns that the high price of oil will stoke inflation at a time when many central banks are trying to cut interest rates to stimulate growth.
US shares had already been hit on Wednesday by figures showing that the manufacturing sector was contracting.
After oil broke the $100 barrel they fell further, with the Dow Jones trading 215.1 points, or 1.6%, lower at 13,049.73.
I would imagine the speculators are the biggest drivers today Phil Flynn, Alaron Trading Oil industry in figures
But some analysts played down the relevance of passing the $100 mark.But some analysts played down the relevance of passing the $100 mark.
"The entire focus on $100 oil is frivolous," said Tim Evans at Citigroup Futures Research in New York."The entire focus on $100 oil is frivolous," said Tim Evans at Citigroup Futures Research in New York.
I would imagine the speculators are the biggest drivers today Phil Flynn, Alaron Trading Oil industry in figures
"It is not a magic number. It doesn't suddenly make this a fundamentally strong market.""It is not a magic number. It doesn't suddenly make this a fundamentally strong market."
Light trading Trading volumes were about half of their usual levels as traders returned from their new year breaks, which may have exaggerated the effect of speculative transactions, analysts said.
While daily price rises have been blamed on unrest in oil-supplying countries such as Nigeria, the real increase in demand has come from China and India.
Trading volumes were about half of their usual levels as traders returned from their New Year breaks, which may have exaggerated the effect of speculative transactions.
"I would imagine the speculators are the biggest drivers today," said Phil Flynn from Alaron Trading in Chicago."I would imagine the speculators are the biggest drivers today," said Phil Flynn from Alaron Trading in Chicago.
The oil-producers' cartel Opec has also blamed speculators for the high price of crude and said that there is plenty of the fuel in the market to meet demand.The oil-producers' cartel Opec has also blamed speculators for the high price of crude and said that there is plenty of the fuel in the market to meet demand.
Moving on up?
But there are those who believe that oil prices can rise significantly higher.
While daily price rises have been blamed on unrest in oil-supplying countries such as Nigeria, a underlying and significant factor has been an increase in demand from China and India.
"$100 is just the beginning," said Zachary Oxman, senior trader at Wisdom Financial in California.
"This is kicking off what you are going to see this year. There will be huge moves up in gold and huge moves up in crude."