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Oil hits new 26-month high point

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AFPPTI London
Last Updated : Jan 20 2013 | 1:37 AM IST
I / London December 24, 2010, 19:46 IST

Oil prices hit another 26-month peak today, lifted by freezing weather and upbeat US data, before pulling lower on profit-taking before the Christmas and New Year break.

At about 0430 GMT, London Brent North Sea crude for February delivery soared to $94.74 per barrel -- the highest point since October 2008.

The contract later stood at $93.86, down 39 cents from yesterday's closing level.

New York's main contract, light sweet crude for delivery in February, had rallied $1.03 to 91.51 yesterday, when it struck a similar 2008 peak at 91.63. The New York Mercantile Exchange was closed today.

"Today, due to a lack of economic news and with most markets closed for Christmas break, volumes will be thin and any attention will switch to potential currency movements," said Sucden analyst Myrto Sokou.

"As we are approaching the year-end, the recent rally in crude oil prices shows the underlying strength in the oil market.

"Overall, it seems that there is a strong outlook for the oil market, as crude oil prices continue strongly their upside momentum and hold strong support above the 90-dollars-per-barrel area."

This week, icy weather across Europe and northeastern US states -- which forecasters said would last until the end of the year -- lifted prices because it boosts demand for heating oil.

The market also spiked higher following Wednesday's news of plunging US crude reserves as demand in the world's biggest oil-consumer rises.

US crude stocks slumped 5.3 million barrels in the week to December 17, more than double market expectations for a drop of 2.3 million barrels, reflecting strengthening demand in the world's biggest economy.

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First Published: Dec 24 2010 | 7:46 PM IST

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