Oil moves above $81 amidst growing supply worries
19 Sep 2007
Mumbai: Oil prices rose to an all-time high above $81 a barrel on Tuesday, fuelled by concerns of a supply squeeze in the United States, ahead of an anticipated interest rate cut by the Federal Reserve.
US crude was up 2 cents at $80.59 a barrel by 1406 GMT after hitting a record $81.24 and following a $1.47 jump on Monday. London Brent crude was off 26 cents at $76.72.
Tightening US fuel inventories amidst hurricane and other supply risks and fund flows into energy from equity markets have driven a rally that has taken US crude to new record highs for five straight trading sessions.
The Organisation of the Petroleum Exporting Countries agreed last week to boost output by 500,000 barrels per day (bpd) from November, but the move has failed to soothe consumer concerns.
Some
OPEC members say the exporters may have to pump more if oil stays above $80 for
long. US crude has climbed 33 per cent this year.
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