VARIOUS: Oil prices soar to a new high as spiralling tensions on the border between Turkey and northern Iraq add to concerns over winter supplies

Record ID: 343838

  • Title: VARIOUS: Oil prices soar to a new high as spiralling tensions on the border between Turkey and northern Iraq add to concerns over winter supplies
  • Date: 16th October 2007
  • Summary: (BN11) UNIDENTIFIED LOCATION, IRAN (FILE) (REUTERS) VARIOUS OF OIL REFINERY
  • Embargoed: 31st October 2007 12:00
  • Keywords:
  • Topics: Industry
  • Reuters ID: LVAAUM9R3S908IG76QX0FXAV7UIV
  • Story Text: Oil prices soar to a new high as spiralling tensions on the border between Turkey and northern Iraq add to concerns over winter supplies.
    Oil zoomed to an all-time high above 85 dollars U.S. dollars a barrel on Monday (October 15), propelled by robust demand from booming commodity markets and fresh geopolitical worries.
    Senior Energy Analyst at the Centre for Global Energy Studies Julian Lee said that mounting tension on the border between Turkey and northern Iraq was the most immediate source of nervousness in an already stretched market.
    The Turkish government asked parliament on Monday for permission to launch an attack on Kurdish separatists in northern Iraq, although it said it was hoping the situation would not reach that point.
    The Middle East pumps a third of the world's oil and supply disruptions there can hugely impact the oil price.
    Oil has remained above 80 dollars (USD) for most of the past month, fuelled by supply concerns ahead of winter when demand peaks and record lows for the U.S. dollar.
    U.S. crude was $1.15 higher at 84.84 USD a barrel by 1303 GMT on Monday, off a new record high of 85.19 USD -- its fifth straight session of gains. London Brent crude was 1.08 USD higher at 81.63 USD, off its record high of $81.93.
    Lee said 90 USD a barrel could well be reached,
    "I think realistically if we don't get the sort of response that we need from OPEC, and if demand growth remains anywhere near as robust as the International Energy Agency thinks -- and they're much more optimistic than we are, we think things will slow down quite dramatically -- but if they don't, then we could well see prices above 90 dollars a barrel in the winter, and with any sort of disruption or any substantial increase in the fears of a supply disruption, then a 100 dollar a barrel oil can't be ruled out. I don't think it's sustainable, but how many times have we heard that in the past about prices of 70 or 80 dollars a barrel," he said.
    U.S. Energy Secretary Sam Bodman said on Friday the country's economy had been "remarkably resilient" to record high oil.
    And the Organization of the Petroleum Exporting Countries (OPEC) said on Monday the world's top consumer looked more likely to avoid a sharp economic downturn.
    In its monthly report, OPEC raised its forecast for demand for its crude this winter. The group that pumps more than a third of the world's oil is already set to boost supplies by an extra 500,000 barrels a day from Nov.
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