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<span style="font-weight: bold">News Source: OTGNR - </span>
<span style="font-weight: bold"> Confirmed : Oil Prices Hit US $ 90 Milestone ( AP )...</span>
Oil prices on Tuesday jumped above US$90 a barrel for the first time in more than two years, a key milestone for Wall Street analysts who say tightening supplies will eventually send prices above the US$100 mark next year.The recent surge in oil pushed gasolene and other fuel prices higher as well.Average heating oil and diesel prices are expected to increase year-over-year for the first time since 2008On Tuesday, benchmark oil for January delivery gave up 78 cents to $88.60 a barrel on the New York Mercantile Exchange, after the contract hit US$90.76 a barrel earlier in the day, the highest price since October 8, 2008.Oil prices had been relatively stable for more than a year.They've moved higher since the Federal Reserve announced plans to inject $600 billion into the economy. Prices crossed the $90 mark early Tuesday as President Obama and Republican leaders hammered out an agreement to extend Bush-era tax cuts. A cold snap also swept through Europe and the United States, lifting demand for fuel.Wall Street analysts now predict that oil will hit US$100 per barrel sometime next year. They point to rising demand from China and other emergingeconomies. Organization of Petroleum Exporting Countries (OPEC) countries can crank up production to meet that demand now, but their ability to do that is expected to decline over the next few years.Morgan Stanley estimates that spare production capacity will be cut in half in two years, falling to levels seen in 2007 and 2008, once again raising tensions about supplies and the world's thirst for oil.Already, the International Energy Agency notes that supertankers are storing less oil offshore, and experts predict supplies will tighten elsewhere.Oil prices above US$90 - the top of the range considered "comfortable" by the world's main oil exporters - could crimp demand and stifle economicgrowth."This could fuel speculation that OPEC will decide on measures to dampen prices at its extraordinary meeting at the weekend, which could take the wind out of the sails of the oil price rally for a while," said a report from Commerzbank in Frankfurt.In other Nymex trading in January contracts, heating oil fell less than a penny to US$2.4664 a gallon, gasoline futures gave up 2.03 cents to US$2.3214 a gallon and natural gas lost 1.8 cents to US$4.47 per 1,000 cubic feet in midday trading.In London, Brent crude fell 24 cents to US$91.21 a barrel on the ICE Futures exchange.
<span style="font-weight: bold"> Confirmed : Oil Prices Hit US $ 90 Milestone ( AP )...</span>
Oil prices on Tuesday jumped above US$90 a barrel for the first time in more than two years, a key milestone for Wall Street analysts who say tightening supplies will eventually send prices above the US$100 mark next year.The recent surge in oil pushed gasolene and other fuel prices higher as well.Average heating oil and diesel prices are expected to increase year-over-year for the first time since 2008On Tuesday, benchmark oil for January delivery gave up 78 cents to $88.60 a barrel on the New York Mercantile Exchange, after the contract hit US$90.76 a barrel earlier in the day, the highest price since October 8, 2008.Oil prices had been relatively stable for more than a year.They've moved higher since the Federal Reserve announced plans to inject $600 billion into the economy. Prices crossed the $90 mark early Tuesday as President Obama and Republican leaders hammered out an agreement to extend Bush-era tax cuts. A cold snap also swept through Europe and the United States, lifting demand for fuel.Wall Street analysts now predict that oil will hit US$100 per barrel sometime next year. They point to rising demand from China and other emergingeconomies. Organization of Petroleum Exporting Countries (OPEC) countries can crank up production to meet that demand now, but their ability to do that is expected to decline over the next few years.Morgan Stanley estimates that spare production capacity will be cut in half in two years, falling to levels seen in 2007 and 2008, once again raising tensions about supplies and the world's thirst for oil.Already, the International Energy Agency notes that supertankers are storing less oil offshore, and experts predict supplies will tighten elsewhere.Oil prices above US$90 - the top of the range considered "comfortable" by the world's main oil exporters - could crimp demand and stifle economicgrowth."This could fuel speculation that OPEC will decide on measures to dampen prices at its extraordinary meeting at the weekend, which could take the wind out of the sails of the oil price rally for a while," said a report from Commerzbank in Frankfurt.In other Nymex trading in January contracts, heating oil fell less than a penny to US$2.4664 a gallon, gasoline futures gave up 2.03 cents to US$2.3214 a gallon and natural gas lost 1.8 cents to US$4.47 per 1,000 cubic feet in midday trading.In London, Brent crude fell 24 cents to US$91.21 a barrel on the ICE Futures exchange.