Royal Dutch Shell Plc  .com Rotating Header Image

Guardian Unlimited: Political tensions drive oil above $92

Graeme Wearden
Friday October 26, 2007

Renewed fears over relations between the US and Iran helped to push the oil price to a new all-time high this morning.

The price of a barrel of oil for December delivery reached $92.01 a barrel.

Traders said the economic sanctions announced yesterday by US secretary of state Condoleeza Rice against Iran had fuelled concern over rising tensions in the Middle East.

There were already worries that military action between Turkey and Kurdish rebels could disrupt supplies.

The oil price was as low as $50.48 back in January, but could now be on track to hit the $100 a barrel mark.

The weak dollar is also driving the oil price higher. It hit a new all-time low against the euro of $1.4364 this morning, amid speculation that US interest rates will be cut next month. A cut would stimulate the economy and increase demand for oil, economists believe.

Oil-producing nations are resisting calls to increase supply, insisting that the rising prices are not caused by product shortages.

“There is no interruption of supply. There’s a lot of oil in the market”, said Abdalla El-Badri, secretary general of Opec, yesterday.

Royal Dutch Shell also said on Thursday that political tension and market speculation, not supply problems, were causing record oil prices.,,2199775,00.html?gusrc=rss&feed=24 and its sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.

0 Comments on “Guardian Unlimited: Political tensions drive oil above $92”

Leave a Comment

%d bloggers like this: