Crude rises to new record level at $86

Food

Oil prices set new records this week after Turkey warned that it might attack Kurdish separatist groups in Northern Iraq, a key emerging oil-producing area.

Cooler weather in the Northern US and a fresh political chill between Turkey and Iraq combined to drive crude oil prices into uncharted territory, above $86 a barrel. Low-sulfur West Texas Intermediate crude oil for delivery next month closed at a record of $86.13 a barrel on the New York Mercantile Exchange on Monday. The price rose $2.44 a barrel on the day, a gain of almost 3%. While crude is still below the inflation-adjusted record high set in 1981, the sharp rise and the setting of a nominal record helped to spook investors worried about inflation.

Turkey triggered the rally in oil prices by warning that it may attack Kurdish bases in northern Iraq, home of the world’s third-largest oil reserves. The OPEC added fuel to the rally by warning that crude oil production by non-OPEC nations would fall short of forecasts. “Surging oil prices are.....becoming more worrisome for stock traders,” analyst firm Lion said in a commentary yesterday. “High energy prices support the energy sector of the stock market but they are generally bearish since they divert business and consumer spending from other areas of the economy.” Refined oil products also jumped on the day.

US gasoline futures climbed almost 3.5%, for example, and heating oil futures rose 2.7%. Natural gas futures shot up even further, with one NYMEX contract soaring 6.6% on Monday. Spot prices for immediate delivery of gas, however, declined almost as much, suggesting ample supplies for now. (bi-me.com)

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.