New record highs for crude

26 October 2007

Crude oil prices hit new record highs on Thursday amid renewed fears of supply problems during the peak demand of the northern hemisphere winter.

Following on from a US Government report that revealed the country's stocks of crude and oil products are falling, it emerged that the OPEC countries are not going to be able to increase production as quickly as had been thought.

After the revelation, US crude gained $3.36 to close at $90.46 (£44.01), while London Brent crude climbed $3.11 to settle at $87.48 - both figures represent all-time highs.

Phil Flynn, an analyst at Alaron Trading, told AFP that geopolitical factors, including the US government's decision to impose further sanctions on Iran and the continuing tension between Turkey and Kurdish rebels in northern Iraq, were also influencing oil prices.

"It's all happening at the same time: new concerns with Washington-Iran and new concerns that OPEC isn't going to be able to increase production to meet demand," added Mr Flynn.