3RD LD: Crude oil nears $88 per barrel in New York.
(EDS: ADDING INFO)
The benchmark crude oil futures contract rose to a new all-time high of $87.97 per barrel in off-hours trading in New York early Tuesday on growing expectations of tighter supply toward the winter.
At 10 a.m., the November contract for West Texas Intermediate crude oil gained $0.29 from the previous day to $86.42, on the New York Mercantile Exchange.
There is increasing speculation that the key contract could top
$90 per barrel, market analysts said.
Expectations of tighter supply grew on concerns about disruptions to oil supplies from the Middle East after a report that Turkey's parliament could authorize a large-scale military incursion into northern Iraq to crush Kurdish rebels, the analysts said.
Another contributing factor was an Organization of Petroleum Exporting Countries report that global oil demand will increase while non-OPEC oil production will decrease, they said.
Soaring oil prices may increase inflationary concerns and become a destabilizing factor for the global economy, with the U.S. economy still surrounded by uncertainties due in part to lingering subprime mortgage troubles.
On Monday, the November contract briefly reached $86.71 a barrel and then settled at $86.13, up $2.44 from the day before.
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|Publication:||Japan Energy Scan|
|Date:||Oct 20, 2007|
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