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Oil hits series of record peaks in London, New York as dollar dives
Mon, 3rd Mar 2008 15:24
LONDON (Thomson Financial) - Oil hit a series of new record highs on both sides of the Atlantic as traders remained nervous ahead of this week's OPEC output meeting, and as the dollar plunged to new lows against the euro.
A weak dollar tends to make dollar-priced oil cheaper for holders of foreign currency.
At 3.01 pm, New York's WTI crude for April delivery was up 1.80 usd at 103.65 usd per barrel, having just risen to an all time peak of 103.95 usd.
Meanwhile in London, Brent crude for April delivery was up 1.91 usd at 102.00 usd per barrel, having topped out at 102.29 usd moments earlier.
'(There's) continuing concerns over what's going to come out of Wednesdays OPEC meeting and again it's really just a dollar story,' said Bank of Ireland analyst Paul Harris.
He added there is no shortage of geopolitical tensions in key producing countries supporting oil. On the other hand, he believes the price spike is not sustainable and that prices could retreat after
the OPEC meeting.
OPEC is widely expected to keep output levels unchanged at its meeting Wednesday, although market players are to so some extent still nervous about the outcome and hesitant to sell just yet.
Once the cartel confirms its decision though, and especially if it makes soothing overtures in the form of plans for further meetings to assess output, prices could retreat.
maytaal.angel@thomson.com
ma/slm
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
A weak dollar tends to make dollar-priced oil cheaper for holders of foreign currency.
At 3.01 pm, New York's WTI crude for April delivery was up 1.80 usd at 103.65 usd per barrel, having just risen to an all time peak of 103.95 usd.
Meanwhile in London, Brent crude for April delivery was up 1.91 usd at 102.00 usd per barrel, having topped out at 102.29 usd moments earlier.
'(There's) continuing concerns over what's going to come out of Wednesdays OPEC meeting and again it's really just a dollar story,' said Bank of Ireland analyst Paul Harris.
He added there is no shortage of geopolitical tensions in key producing countries supporting oil. On the other hand, he believes the price spike is not sustainable and that prices could retreat after
OPEC is widely expected to keep output levels unchanged at its meeting Wednesday, although market players are to so some extent still nervous about the outcome and hesitant to sell just yet.
Once the cartel confirms its decision though, and especially if it makes soothing overtures in the form of plans for further meetings to assess output, prices could retreat.
maytaal.angel@thomson.com
ma/slm
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
