October 13, 2007	Saturday	Ramazan 30, 1428

LONDON, Oct 12: World crude prices surged within sight of new all-time record highs on Friday amid increasing tensions between Turkey and Kurdish rebels in oil-producer Iraq, traders said.

The tensions sent the price of Brent North Sea crude soaring to $80.87 a barrel on Friday, just below its all-time record high of $81.05 reached last month.

New York’s light sweet crude soared to $84.05, five cents off its historic peak, which was also struck in September.

In late afternoon London trade, the price of Brent North Sea crude for November delivery stood at $80.85 per barrel, up 70 cents on Thursday’s close.

New York’s main futures contract, light sweet crude for delivery in November, won 91 cents to $83.99 per barrel.

“The reason the market is strong is concern over increasing tensions between Turkey and the Kurds,” Alaron analyst Phil Flynn said.

“There’s a strong possibility if we close above $84 (in New York) this market could go higher yet.”

Oil prices had begun spiking on Thursday after the US Department of Energy said American crude reserves slumped by 1.7 million barrels in the week to October 5. Market expectations had been for a 1.0-million-barrel gain.

The DoE added that US distillates, which include heating fuel, slid by 600,000 barrels, which was broadly in line with market expectations for a 775,000-barrel drop.

This week, the oil market has swung between losses and gains as sentiment was swayed by supply concerns and the flagging US dollar.

Prices slumped by more than $2 on Monday as the dollar rose against the European single currency. A stronger US unit makes commodities priced in dollars more expensive for buyers using other currencies, and therefore weakens crude demand.—AFP