Don't miss

Replay


LATEST SHOWS

THE DEBATE

Macron's marching orders: New French President's first EU summit

Read more

MEDIAWATCH

Handling the heatwave

Read more

FOCUS

South Sudan: A rare look at both sides of the civil war

Read more

PEOPLE & PROFIT

Paris Air Show: Big plane builders face increasing competition

Read more

THE INTERVIEW

Former UK police chief: 'We are facing disorganised terrorism'

Read more

ENCORE!

Diana Krall: 'I find romance in everything'

Read more

IN THE PAPERS

Saudi Arabia's 'Prince of Chaos'

Read more

IN THE PAPERS

Macron's government, take two: 'Reviewed and corrected'

Read more

INSIDE THE AMERICAS

Travis Kalanick: Uber boss steps down amid controversy

Read more

Oil prices break historic record

Latest update : 2008-03-13

For the first time, oil prices reached their highest value of $110.20 a barrel in New York.

Rocketing oil prices broke through 110 dollars per barrel for the first time in New York on Wednesday continuing a record run amid supply concerns and fevered market speculation.
  
The new record occurred as New York's main oil futures contract, light sweet crude for delivery in April, struck 110.20 dollars per barrel.
  
Traders said the ailing dollar also has fueled a spike in world oil prices because crude is priced in dollars and has become cheaper to buy for purchasers holding stronger currencies.
  
Supply concerns have persisted since the Organization of the Petroleum Exporting Countries oil producer's cartel announced last week that it was maintaining its output quotas at current levels despite skyrocketing prices.
  
Crude values also pushed higher despite the US Department of Energy reporting earlier Wednesday that US crude oil stocks had risen 6.2 million barrels last week, far above the gain of 1.7 million that most analysts had predicted.
  
"Whether you call this run speculative buying or hedging against dollar weakness, it definitely has nothing to do with oil market fundamentals" of supply and demand, Standard Bank analysts said in a research note.
  
Some economists have expressed concern about spiking oil prices, saying they have unleashed inflationary pressures on the global economy and especially the US economy which is already enduring a housing slump and a credit crunch.
  
The International Energy Agency, which seeks to coordinate energy policy among the world's leading industrialized nations, said Wednesday that it would convene a meeting of oil industry experts to review the jump in prices.
  
"There will be a meeting (Monday in Paris) on prices with experts, both from the financial and (oil) trading sectors, as well as with representatives of the production and refining sectors," an IEA spokeswoman told AFP.

Date created : 2008-03-12

COMMENT(S)