New York Oil Prices Down Back

New York Oil Prices Down Back

Image source:

Oil prices ended lower on Friday after surging to a record high above $ 90 a barrel in New York amid fears of global supply and tensions between Turkey and Iraqi crude producers, traders said.

New York's main oil futures contract, light sweet crude for delivery in November, closed down 87 cents at $ 88.60 a barrel. But in early trade the price had surged to a record US $ 90.07, topping previous highs of US $ 90.02 on Thursday.

In London, Brent North Sea crude for December delivery fell 81 cents to US $ 83.79 after hitting a record US $ 84.88 on Thursday.

"The reduced geopolitical fears provide good support for oil prices," said analyst Andrey Kryuchenkov of Sucden brokerage firm in London.

This week, crude oil prices have broken records as Turkey gives a possible military operation in northern Iraq – where the troubled country's biggest oil field becomes the base of Kurdish guerrillas. "The oil market is doing short-term profit-taking," said Citigroup analyst Tim Evans.

Kudi Iraq has said it will reply to every attack to their territory. The market was also fretting after the US dollar fell. The greenback's decline for commodity prices in the US dollar unit became cheaper for buyers using stronger currencies spurring crude demand, analysts said.

In early Friday morning trade, the European single currency shot to new record highs at US $ 1.4319.

"Prices are still underpinned by the weakening dollar and the tight supply of fuel ahead of winter," added Kryuchenkov.

Heating fuel demand increased during the peak winter period in the northern hemisphere and supply is expected to tighten. (* / erl)

Related Post