Oil hits record over $90


Oil roared to a new record over $90 on Thursday as tight inventories and fresh signs OPEC will shrug off calls for additional oil from big consumer nations sent prices up nearly 4 percent.

U.S. crude settled up $3.36 to $90.46 a barrel after striking a record $90.60. The rise added to Wednesday's gain of nearly $2. London Brent rose $3.11 to $87.48 a barrel.

Energy officials from OPEC nations Venezuela and Algeria said the producer group will not boost output when it meets informally in Saudi Arabia next month.

"The high prices are not coming from a lack of production," Algerian Energy Minister Chakib Khelil said.

OPEC already has agreed to boost production by 500,000 barrels per day from November 1, but the United States has called on the group to increase output further, while No. 2 consumer China has said prices are too high.

Tracking the explosive rise in crude prices, heating oil futures hit an new all-time record, while gasoline futures rose to their highest level since mid-July.


Reuters
10/25/2007 1:59:41 PM