Brent oil prices in sight of record
NORTH SEA oil pushed above $78 a barrel yesterday and reached an 11-month high, just short of the all-time peak of last August.
Rig shutdowns for summer maintenance, combined with the unexpected closure of a pipeline, sent the price of Brent crude rising to $78.40, only 25 cents below last year’s record, before closing at $77.34.
Analysts said prices were also being buoyed by investors buying into oil on speculation that the rises would continue.
However, there was some hope of respite as oil exporters organisation Opec predicted demand would grow moderately next year, while supply from non-member countries would expand.
The rise in oil prices came while the US dollar tested fresh 26-year lows against the pound and fears intensified about the health of the American economy.
Sterling climbed above $2.04 amid concerns a crisis in sub-prime or higher-risk mortgages would curtail wider investment.
The dollar also weakened against the euro yesterday on expectations that the European Central Bank would raise interest rates to above 4 per cent to counter concerns about rising inflation.