Crude Oil Rises to a Record $90 a Barrel
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Crude oil rose to a record $90 a barrel in New York after the dollar fell against the euro, enhancing the appeal of commodities as an investment.
Investors purchased oil on speculation the Federal Reserve will cut borrowing costs to bolster the American economy when the bank next meets October 31. Interest-rate futures show a 70% likelihood the Fed will lower its target rate for overnight loans a quarter-percentage point to 4.5%. “There’s still no end in sight in terms of what people are willing to pay,” a commodity broker at Access Futures & Options Trading in Woodlake, Calif., Bob Frye, said. “With the weakness in the dollar” we may get to $96 if prices stay much above $90, he said.
Crude oil for November delivery reached $90.02 a barrel in after hours electronic trading on the New York Mercantile Exchange, the highest price since trading began in 1983. It was at $89.56 at 8:45 a.m. in Singapore.
The contract rose $2.07, or 2.4%, to $89.47 yesterday, a record close.
Oil futures set records the past four days on concern supplies from northern Iraq may be disrupted if Turkey takes military action against Kurdish rebel bases in the region.
