New Crude Oil Highs On Supply Concerns

Crude Oil for November delivery briefly traded up to a record high of $88.20 per barrel today as supply concerns once again fueled the market.

Fears that Turkey may invade northern Iraq to strike against Kurdish rebel PPK forces are focusing concern on an interruption of oil supplies from northern Iraq. With oil supplies deemed to be tight going into the fourth quarter any potential interruption of supplies is taken seriously by oil traders and prices are pushed ever higher.

“Whenever there is any escalation in political tensions in the Middle East, oil markets become concerned,” said David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney. “There is production and there are pipelines that people worry may be affected if there are any issues in Iraq.”

$100 a barrel crude oil may not be that far away. There are hot spots in Iraq, Nigeria, Iran, and even Saudia Arabia that could erupt at any moment and cause a spike to $100 a barrel and perhaps far beyond.

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