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Monday, 01 December, 2008, 22:50 GMT | more >>

Oil barrels to new record over $108



By Upstream staff 

US crude oil futures surged on Monday, bouncing off an early low as speculators kept bullish momentum intact and sent prices to an intraday record peak above $108 a barrel.

Traders cited the dollar's early weakness and the recent tendency for crude oil traders to buy into price dips as reasons for the latest surge.

Nymex April crude closed up $2.70, or 2.57%, at $107.85 a barrel, trading from $104.08 to a record-high $108.21.

Fears of recession, following the biggest US job losses in five years and strains in the credit market, have depressed equities and the dollar while prompting many investors to seek safety in commodities including oil.

The effect of the slowdown in top consumer the US could start to have an impact on demand.

A sharp drop in US crude oil inventories and Opec's decision last week to hold supplies steady have also boosted oil prices.

Opec president Chakib Khelil said on Monday that speculation and political tension would keep prices at triple digits through the year.

Opec will next meet in September, although ministers could confer informally at a conference between consumers and producers in Rome on April 20-22, Reuters reported.


Monday, 10 March, 2008, 15:59 GMT  | last updated: Monday, 10 March, 2008, 20:06 GMT

Oil blows its top: Spindletop gusher, circa 1901
 

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