Vidya Ram, 10.15.07, 1:55 PM ET
LONDON – Concerns about crude inventory levels in the U.S. and escalating tensions between Turkey and Iraq drove oil prices to an all-time high Monday.
The price of sweet crude oil for November delivery in New York rose to $85.39 a barrel in afternoon trading. It is the first time a barrel has passed $85. On Friday, oil closed at a record $83.69 on the New York Mercantile Exchange.
Last week oil prices, which have remained above $80 since the start of September, set new records, amid concerns that falling crude inventories in the United States could mean that there were insufficient supplies for the winter period. Threats from Turkey to invade northern Iraq to deal with rebels in the north of the country have also kept prices strong. As the area close to major crude oil pipelines, any conflict in the region could disrupt oil supplies form Iraq, which holds the world’s third-largest oil reserves.