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| Oil price at record $100 a barrel | Oil price at record $100 a barrel |
| (about 1 hour 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, Algeria and Pakistan, the weak US dollar and the threat of 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. |
| 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 rose $4.02 to $100 a barrel in New York, prompting a drop in shares and a surge in gold prices. |
| 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. | 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. | US shares had already been hit on Wednesday by figures showing that the manufacturing sector was contracting. |
| The entire focus on $100 oil is frivolous Tim Evans, Citigroup Futures Research Oil industry in figuresKey events in oil's climb | |
| 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. | 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. |
| "All of the factors that pushed us above $80 are now moving us higher," said Peter Beutel at Cameron Hanover in Connecticut. | "All of the factors that pushed us above $80 are now moving us higher," said Peter Beutel at Cameron Hanover in Connecticut. |
| "Until we get more supply or demand starts to take a hit, there is no reason we can't see any number." | "Until we get more supply or demand starts to take a hit, there is no reason we can't see any number." |
| 'Frivolous' | 'Frivolous' |
| 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. |
| "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." |
| 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. | 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. |
| "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. |
| $100 is just the beginning Zachary Oxman, Wisdom Financial | |
| 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. |
| President Bush has said he will not be drawing on the US Strategic Petroleum Reserve (SPR) to try to bring down prices. | President Bush has said he will not be drawing on the US Strategic Petroleum Reserve (SPR) to try to bring down prices. |
| "This president will not use the SPR to manipulate (oil prices)," White House spokeswoman Dana Perino said. | "This president will not use the SPR to manipulate (oil prices)," White House spokeswoman Dana Perino said. |
| "Doing a temporary release of the SPR is not going to change prices very much." | "Doing a temporary release of the SPR is not going to change prices very much." |
| Moving on up? | Moving on up? |
| There are those who believe that oil prices can rise significantly higher. | 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. | 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. | "$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." | "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." |
| Central banks such as the Bank of England and the Federal Reserve are worried that rising oil prices will prevent them cutting interest rates. | |
| Expensive oil increases inflation, which makes it more difficult to make the rate cuts that the central banks are considering to boost growth. |