September 29, 2007	Saturday	Ramazan 16, 1428

LONDON, Sept 28: The price of London Brent crude oil on Friday rocketed above $81 a barrel for the first time owing to concerns over stretched global energy supplies before profit-taking set in, traders said.

Brent raced to an historic peak of $81.05. London’s Brent North Sea crude for November delivery later stood at $79.55 per barrel, down 48 cents.

New York’s main futures contract, light sweet crude for delivery in November, shed 78 cents to $82.10 per barrel. Last week New York crude hit an all-time record of $84.10.

Prices spiked by more than two and a half dollars on Thursday, with London smashing through $80 for the first ever time owing to stormy weather in the rig-heavy Gulf of Mexico.

Traders on Friday said investment funds weighed into the market, encouraged also by the weak US dollar and expectations for strong crude demand.

“The market is continuing to tighten with very strong demand coming through in most parts of the world,” said Barclays Capital analyst Kevin Norrish. “The market looks very healthy right now.”

“We have been warning that there is upside price risk and that is the way it seems,” he said.

The sliding dollar has also buoyed oil prices. A weak US unit makes dollar-denominated commodities cheaper for buyers with stronger currencies and therefore encourages demand.

Prices are finding “continued support from a weaker dollar and persistent concerns over global oil supplies ahead of the winter heating season,” said Sucden analyst Michael Davies.

Demand for heating fuel hits a peak in the forthcoming northern hemisphere winter.

Meanwhile, Tropical Storm Lorenzo strengthened into a hurricane and slammed ashore early Friday along one of Mexico’s oil producing regions, the US National Hurricane Centre said.

The Gulf of Mexico is a leading oil-producing region for the United States and Mexico and investors are worried that, during the long Atlantic hurricane season that ends in November, a storm will damage oil rigs and other infrastructure.—AFP