The price of crude oil broke through $98 per barrel today amid reports of diminished US reserves, according to Bloomberg. Investors are also wary of tense relations between the Turkish government and Iraqi Kurds and of terrorist attacks in Afghanistan and Yemen that have affected pipeline outputs. Meanwhile storm Andrea is raging in the North Sea, halting production on some of BP and ConocoPhilips' platforms on the Ekofisk and Valhall fields. The record price comes as the US dollar plunged to new lows against the euro and sterling, which reached over $2 today. The US Energy Information Administration has warned that "despite the OPEC commitment to raise output beginning in November, strong demand, limited surplus capacity, falling inventories and geopolitical concerns continue to weigh on the market." WTI (West Texas Intermediate) crude oil is nearing $100 per barrel, close to the record $104 per barrel recorded in March 1980. Where crude leads, bunkers are following closely behind, and 380cSt fuel oil has burst through the $500/tonne ceiling - reaching $514/tonne in Singapore and $507/tonne in Rotterdam. A year ago the same fuel cost $269/tonne and $263/tonne respectively.
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Source: portnews
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