Oil prices reach all-time high; pass US$91.00 per barrel

October 26, 2007

Oil has risen to a new all-time record high during trading in Asia, passing US$91.10 at 10:23 p.m. on October 25 (eastern time).

In electronic trading at the NYMEX Crude Futures in the United States touched a record price of, at US$92.22, according to Bloomberg, setting another record all-time high. On the IntercontinentalExchange Brent Crude futures reached US$89.30 (basis December) as of 8:34 a.m..

NYMEX Crude closed at $91.86, while ICE Brent closed at $88.69, at the conclusion of Friday's trading.

The raise come when the United States announced that it had an "unexpected loss" in the nation's stockpile of oil. The fear that Turkey may launch a large scale attack on Kurdish Militants inside Iraq is also being blamed for the raise in prices and the U.S. imposed more sanctions on Iran for continuing to enrich uranium.

Australia's Commonwealth Banks states that the raise is "being supported by an increase in geopolitical tensions and also market developments. The US has announced that it is imposing new sanctions on Iran, Oil markets also continued to have an eye on developments related to the current tensions between Turkey and Kurd rebels in Iraq."

OPEC has agreed that by November 1, 2007, they will increase the amount of barrels of oil they produce by 500,000 barrels a day. The U.S. says that they would like that number increased.