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LONDON: The price of oil rocketed to a record high past $146 a
barrel here Thursday owing to falling reserves of US crude,
simmering tensions over Iran and a weak dollar, traders said.
In reaction, Saudi Arabian Oil Minister Ali al-Nuaimi
said his country, the world’s leading oil exporter, was
“concerned” about soaring prices.
Brent North Sea oil for August delivery surged
to a lifetime peak of $146.34 a barrel in morning trade.
New York’s main oil contract, light sweet
crude for August delivery, surged past $145 for the first time to
reach an all-time pinnacle of $145.43 a barrel.
“There is actually a chance we could see $150
today [Friday in Manila],” said the latest Schork Report on energy
markets.
Brent oil later stood at $145.92, up $1.66 from
the most recent close. New York crude was up $1.54 at $145.11.
Oil prices, which have doubled in value over the
past year, were partly driven by news that American crude stockpiles
fell by two million barrels to stand at 299.8 million barrels in the
week to June 27.
The US government’s Energy Information
Administration had also revealed Thursday that crude inventories
were 15.3 percent lower than at the same stage one year ago.
“It was the first time inventory fell below
the psychologically critical 300-million-barrel threshold since
January,” said PetroMatrix analyst Olivier Jakob.
The latest record-breaking price surge also came
after Iranian Oil Minister Gholam Hossein Nozari said Iran would
react fiercely to any military attack against the oil exporter.
The OPEC, or the Organization of the Petroleum
Exporting Countries, said Thursday that it would be difficult to
replace the crude output of Iran should the country face attack.
“If something happened in Iran, it is
difficult to replace [Iran’s output of] 4.1 or 4.2 million barrels
a day,” OPEC Secretary-General Abdallah el-Badri told the daily
newsletter of the World Petroleum Congress in Madrid.
There has been a surge in speculation recently
that Israel might be planning a military strike against Iran’s
nuclear sites.
Iran has been locked in a five-year standoff
with the West over its nuclear program. Iran claims it is for
generating electricity while Western powers fear the development of
nuclear weapons.
On Thursday, the oil market also found key
support from the struggling US currency, which makes dollar-priced
commodities cheaper for foreign buyers and tends to encourage
demand, analysts said.
Dealers said the US currency could slide further
against the euro because the European Central Bank, led by President
Jean-Claude Trichet, was widely expected to increase eurozone
interest rates on Thursday.
-- AFP
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