NEW YORK, Jan. 2 (Xinhua) -- Crude oil futures set a
record close Wednesday, the first trading day of year 2008, after briefly hit
100 U.S. dollars a barrel on concerns of tight supply and weak U.S. dollar.
Light, sweet crude for February delivery rose 3.64
dollars to settle at 99.62 dollars a barrel, refreshing its record close of
99.29 dollars set last November on the New York Mercantile Exchange (NYMEX)
after briefly hit the 100 dollars landmark.
"The fact that oil briefly hit the psychologically
important 100 dollars per barrel mark at around 12:10 p.m. EST highlights the
bullishness that exists in the energy complex," Wall Street Strategies' senior
research analyst Conley Turner told Xinhua. "We have been calling this trade for
a few months now and today it has finally occurred, albeit briefly."
Traders gesture in the oil futures pit
at the New York Mercantile Exchange in New York, Wednesday, Jan. 2, 2008.
(Xinhua/Reuters Photo) Photo Gallery>>>
"The reasoning behind the move had much to do with
the reemergence of geopolitical concerns. In this case, supply disruptions in
Nigeria, the 12th largest producer in the world and Africa's largest, caused
traders to bid up the price," he said.
Crude futures jumped sharply Wednesday morning on
supply concerns sparked by Nigeria unrest.
A total of 15 people, including four policemen, were
killed on Tuesday. All the policemen, six militants and three civilians died
when members of the Niger Delta Vigilante Movement invaded two police stations,
Artillery Junction and a popular hotel in Port Harcourt, the capital city of
Rivers State.
The Organization of Petroleum Exporting Countries
(OPEC) said its member nations may not be able to meet demand as early as
2024stirred the crude prices' rise.
Also providing a lift for prices is speculation that
stockpiles in the United States declined for a 7th week, said Turner.
Stocks of crude in the United States were expected to
have fallen 2.2 million barrels last week, the 7th straight week of decline, as
refiners processed more crude. Weekly government data will be released Thursday.
"Additionally, the U.S. dollar fell in value against
other major currencies today," Turner added. "Oil prices have an inverse
relationship the value to the dollar. Given this action, it is well within
reason to expect the commodity to trade above the 100-dollar mark as the year
progresses."
In other NYMEX trading Wednesday, February heating
oil futures rose 9.1 cents to settle at a record 2.7404 dollars a gallon after
setting a trading record of 2.7465 dollars while February gasoline futures
climbed 7.81 cents to settle at a record 2.5689 dollars a gallon after setting
their own trading record of 2.5784 dollars.
In London, February Brent crude rose 3.37 dollars to
settle at 97.84 dollars a barrel on the ICE Futures exchange.
BEIJING, Jan. 2 (Xinhuanet) -- Crude oil prices ended
2007 57 percent higher -- almost 96 U.S. dollars a barrel -- than where they
started, leading U.S. analysts to predict geopolitical instability and rising
demand will keep upward pressure on energy costs early in 2008.
"There's a good chance this week that we'll see some
record highs," said Jim Ritterbusch, president of Ritterbusch and Associates in
Galena, Ill.
Oil reached a trading record of 99.29 dollars on Nov.
21, and, at the current price of 95.98 dollars, remains close to the range of
inflation-adjusted highs set in early 1980. Depending on how the adjustment is
calculated, 38 dollars a barrel then would be worth 96 dollars to 103 dollars or
more today. Full story
WASHINGTON, Jan. 2 (Xinhua) -- U.S. President George W.
Bush will not tap oil reserves to drive down soaring prices, the White House
said Wednesday.
"This president would not use the Strategic Petroleum
Reserve to manipulate prices unless there was a true emergency," said White
House press secretary Dana Perino. Full story
