[NYTr] Oil surges above 93 dollars in Asian Trade

[All the News That Doesn't Fit]

AFP - Oct 29, 2007
http://www.afp.com/english/news/stories/071029054025.ib3oqb6w.html

Oil surges above 93 dollars in Asian trade

SINGAPORE (AFP) - Oil spiked past 93 US dollars in Asian trade Monday
to set a new intra-day high as tensions in the Middle East continued to
spook investors, dealers said.

Prices were also partly driven up by a new tropical storm, dubbed Noel,
in the Caribbean which investors fear may make its way to the US gulf
coast where many of the country's energy facilities are located, they
said.

At 12:40 pm (0440 GMT) New York's main futures contract, light sweet
crude for December delivery had eased from its new trading high of
93.19 dollars to 93.12 dollars. The contract had breached 92 dollars
for the first time on Friday.

It is currently up 1.26 dollars from its all-time closing high of 91.86
dollars Friday.

Brent North Sea crude for December delivery also surged to a new
trading high, rising 1.21 dollars to 89.90 dollars. Its previous high
was 89.30 dollars set on Friday.

"What we see is a continuation of the trend that was in place Friday,"
said David Moore, a commodity strategist with the Commonwealth Bank of
Australia in Sydney.

"Geopolitical tensions, issues regarding tensions between Turkey and
Kurdish rebels... those sort of factors have added to oil prices," he
said.

Tensions between Turkey and Kurdish militants have fuelled concerns
that energy supplies from the Middle East, where Iran's nuclear
programme has already triggered sanctions from western nations, will be
disrupted.

Crude futures have rocketed by at least 10 dollars in a month and by 30
dollars, or around 50 percent, this year.

Given the current situation, prices are likely to rise further and 100
dollars a barrel for oil cannot be ruled out, said Moore.

"I wouldn't be surprised if in the very short term we see oil prices
continue to move a little bit higher," he said.

"It is certainly possible they will move higher... I personally don't
believe we will see oil prices at a 100 dollars but it is not
impossible given the situation."

The dollar's continued weakness was also bolstering oil prices as
investors now find it cheaper to buy commodities futures including oil
which is priced in the greenback.

In Asian trade Monday, the dollar sank to a new low against the euro as
market players grew increasingly confident about the prospect of
another US interest rate cut this week.

The euro hit 1.4426 dollars in Tokyo trade, breaking the 1.44 level for
the first time since the single European currency's creation in 1999.