Crude breaks the $93 barrier

29 October 2007

The price of crude oil broke the $93 (£45.21) a barrel mark for the first time on Monday morning amid continuing supply fears ahead of the northern hemisphere winter.

US crude for December delivery gained $1.40 on Friday to reach a record close of $91.86 a barrel, before climbing by a further $1.19 during early trading on Monday.

Similarly, London Brent crude rose to a record close of $88.69 on Friday and continued to make gains in Monday's Asian trading to reach $89.87.

David Moore, commodities strategist for the Commonwealth Bank of Australia, told Associated Press that last week's report by the US Energy Information Administration outlining a drop in the country's stockpile of crude and other oil products had prompted the latest price gains.

"The data last week that showed a drop in US oil inventories has renewed focus on the possibility of tightening oil market conditions, particularly over the northern winter," Moore said.

Other analysts have pointed to the growing tensions between the US and Iran, and Turkey and Iraq-based Kurdish rebels for pushing prices up.