Crude oil prices in New York reached a new record, surpassing 37 dollars a barrel during trading Monday in New York -- the highest level since the 1990 Iraqi invasion of Kuwait -- on concern over new tensions in the Gulf.
Oil for October delivery was 96 cents higher at close of business Monday, at 36.88 dollars, after reaching 37.15 dollars during the session. On Friday, the benchmark light sweet crude had risen 1.85 dollars to 35.92 dollars.
November's contract price gained 83 cents to 35.55 dollars Monday, having also increased 1.67 dollars to 34.72 dollars on Friday. The latest rises were provoked by a claim last week by Iraq that Kuwait was stealing oil pumped in a border region. Kuwait denies the charge.
In spite of US assurances, Iraq warned it would take "adequate measures" to defend its "stolen" petroleum assets, estimated at 300,000 barrels per day."I don't think it will get out of hand like it did the last time, but Iraq could suspend their exports just to spite the international community," said Chris Schachte, an analyst for GSC Energy.
"They have a lot more leverage now," in terms of world markets, as their production level approaches more than three million barrels per day, Schachte said. Iraq is the fifth largest supplier of oil to the United States, according to the Department of Energy.—AFP.
©--Agence France Presse.
© 2000 Mena Report (www.menareport.com)
