Crude oil futures prices traded above 80 U.S. dollars a barrel for the first time Wednesday on shrinking U.S. inventories and storm concerns.

Light, sweet crude for October delivery rose as high as 80.18 dollars a barrel on the New York Mercantile Exchange before it settled at 79.91 dollars per barrel. The former intraday high for a front-month contract was 78.77 dollars a barrel, set on Aug. 1. The former highest-ever settlement price for a front-month contract was 78.23 dollars a barrel, which was set on Tuesday.

　　Unexpected decline in U.S. inventories

"It was very clear for some time now that the demand supply imbalance would have driven oil to 80 dollars per barrel. However, the catalyst today for the actual achievement of that milestone was among other things, the unexpected decline in inventories as conveyed by this morning's report by the U.S. Department of Energy," Wall Street Strategies' senior research analyst Conley Turner told Xinhua.

Crude prices surged Tuesday morning right after the Energy Information Administration reported a huge draw on the nation's crude inventories.

Crude stockpiles sank by 7.1 million barrels last week, while gasoline inventories fell by 700,000 barrels. Analysts surveyed by Dow Jones Newswires had expected crude oil inventories fell 2.7 million barrels while gasoline inventories fell 500,000 barrels last week.

Crude imports fell by 674,000 barrels a day on average last week to 9.56 million barrels, while gasoline imports fell an average of 298,000 barrels a day to 1.02 million barrels a day.

Demand for gasoline averaged about 9.6 million barrels a day over the last four weeks, about 0.9 percent above last year.

　　Storm concerns and weak dollar

"The National Hurricane Center has stated that a tropical storm named Humberto has formed off the coast of Texas and another depression has formed in the Atlantic. These have the potential to impact offshore oil producing facilities in the Gulf of Mexico," said Turner.

Tropical storm Humberto formed Wednesday in the Gulf of Mexico and rain was already falling along the Gulf Coast with Humberto's center still about 70 miles south-southwest of Galveston, Texas, the National Hurricane Center said.

Another tropical depression also formed Wednesday far in the open Atlantic, about 1,130 miles east of the Lesser Antilles. It had maximum sustained winds near 35 mph and was moving west-northwest at about 12 mph. Forecasters said it could become a tropical storm later Wednesday.

"A weakening U.S. dollar is also adding fuel to the bullish case for oil," Turner added.

The dollar extended its slide against major currencies Wednesday, hitting a new record low amid expectations of a rate cut. The euro rose as high as 1.3914 dollars in late European trading, surpassing its previous record of 1.3852 dollars set on July 24.

　　Higher oil prices

On Wednesday, light, sweet crude for October delivery rose 1.68dollars to settle at a record 79.91 dollars on the New York Mercantile Exchange.

In London, the price of Brent North Sea crude for October delivery was up 1.30 dollars to 77.68 dollars per barrel after rising as high as 77.93 dollars, approaching the all-time high of 78.60 dollars on the exchange.

"This higher oil price clear complicates the job of the Fed as the specter of inflationary pressures emerging has just increased considerably," Turner pointed out.

"Looking ahead, while there may be some price retracement in the short term, the new psychological target is now 90.00 dollars. Our expectation is for that target to be achieved in the first part of next year," he concluded.