November 09, 2007	Friday	Shawwal 27, 1428

LONDON, Nov 8: World crude prices rebounded toward record high points and within striking distance of $100 a barrel on Thursday amid supply concerns in the North Sea and unrest in oil-rich Yemen.

New York’s main contract, light sweet crude for December delivery, climbed 1.16 dollars to $97.53. On Wednesday it had hit an historic peak of 98.62 dollars.

In London on Thursday, Brent North Sea crude for December delivery gained $1.41 to $94.65. On Wednesday it struck an all-time high of $95.19.

“The dip in equity markets with higher oil prices cited as a drag on growth and the concerns over the credit crunch precipitated by the subprime crisis mean that the drive towards $100 a barrel has been somewhat tempered,” Bank of Ireland analyst Paul Harris said.

Crude futures were nonetheless rising on Thursday amid news that an impending storm over the North Sea forced oil firms to temporarily close platforms off the Norwegian coast cutting its production by 10 per cent.

There was meanwhile oil-related unrest in Yemen on Thursday. Clashes between Yemeni tribesmen and security personnel protecting a Ukrainian oil company left 16 people dead in Shabwa province, east of the capital, the Yemen defence ministry said.

One of the world’s poorest nations despite its proximity to oil-rich Saudi Arabia, Yemen produces 380,000 barrels of crude a day.

More than half of the production is exported, but Yemen is not a member of the Opec oil cartel, which Thursday said that its basket price of crude oil has passed the $90-mark for the first time.

The daily basket price, based on production in 12 different countries, rose to $90.71 on Wednesday from $89.13 the previous day, Opec said in a statement.

The basket price, which is always published with a 24-hour delay and serves as the reference price for output policies of the Organisation of Oil Exporting Countries, has been steadily rising over the past week.

Crude futures rebounded after ending slightly lower on Wednesday as a US government report showed a smaller-than-expected decline in American energy stockpiles.

The US Department of Energy reported that crude reserves dropped by 800,000 barrels last week, confounding market expectations of a 1.8 million-barrel decline.

The DoE also said that distillates, which include heating oil and diesel fuel, unexpectedly rose by 100,000 barrels last week. Analysts had expected a decline of 800,000.

The distillates report is closely watched as the world’s largest energy consumer heads into the northern hemishphere winter, when heating fuel demand typically peaks.

The report said gasoline reserves fell by 800,000 barrels, surprising analysts who had forecast they would remain stable.

—AFP