Oil Prices Hit Record High on Turkey-Northern Iraq Tensions
By VOA News
16 October 2007
Oil prices traded at a record high Tuesday on concerns that Turkey will pursue Kurdish rebels into northern Iraq and disrupt oil supplies in the region.
The price of U.S. crude for November delivery climbed above $88 in mid-day trading in New York. The contract closed Monday at a record high of $86.13.
Dealers say there is concern that an escalation of fighting along the Turkish-Iraqi border could affect oil production and pipelines in northern Iraq. They say another factor driving up crude prices is low supplies of oil in the United States and other consumer nations heading into winter.
In a statement today, the chief of powerful oil cartel OPEC said the group does not favor higher prices, and insists the market is well-supplied.
Oil prices are still below record levels when inflation is factored in. According to estimates, the record high $38 a barrel reached in 1980 would be worth between $90 - $100 today.
Some information for this report was provided by AFP, AP and Reuters.
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