Crude Oil Reach Records


Oil leapt more than $2 a barrel to a new record high of $96.44 on Tuesday, as a weak U.S. dollar and tight fuel stocks prompted buying by speculators.

Investors, wary of global equity markets where the full impact of the credit crunch has yet to become clear, see oil as a good bet, especially given tight fuel supplies in the run up to the northern hemisphere winter.

U.S. crude rose $2.23 to $96.21 a barrel by 8:46 a.m. EST, putting it on course to test the $100 mark. London Brent crude rose $2.08 to $92.57 a barrel after earlier setting a new record high of $92.65.

The prospect of more fallout from the U.S. subprime crisis sent oil tumbling $2 a barrel on Monday as investors worried that slowing economic growth in the United States would curb demand for fuel.


TradingEconomics.com, Reuters
11/6/2007 7:00:29 AM