Oil prices rise to new record
Oil prices rose to further record highs today as tensions between Iraq and Turkey and concerns over global supply put further pressure on crude costs.
The cost of a barrel of US light crude moved past the 86 US dollars mark to a peak of 86.79 US dollars during trading in Asia.
A weak dollar and buying by investment funds are also driving the price rises, which are likely to have a knock-on effect on UK petrol costs.
The contract for US light crude jumped 2.44 US dollars yesterday to settle at a record close of 86.13 US dollars.
The record was achieved as Turkey’s leaders sought parliamentary approval for military action against Kurdish rebels who operate from bases in northern Iraq. The region has the world’s third largest oil reserves.
Additionally, a US energy report last week revealed an unexpected fall in crude stockpiles ahead of the key winter months, while the International Energy Agency added to uncertainties after it said oil stocks held by the world’s biggest industrialised countries have fallen to a five-year low.
