If you can't give a figure does that mean we can expect $200 oil but how could a plentiful resource rise that far?
Nov. 7 (Bloomberg) -- Crude oil rose above $98 a barrel for the first time in New York as the dollar tumbled to a record low against the euro and producers evacuated platforms in the North Sea, evading a storm forecast to bring waves as high as 36 feet.
BP Plc and ConocoPhillips evacuated oilrig workers yesterday, adding to supply concerns before a U.S. Energy Department report today that may show inventories fell for a third week. The dollar slumped, pushing up prices of commodities denominated in the currency, on expectations the U.S. Federal Reserve may cut interest rates.
``One-hundred-dollar oil is the big benchmark and the factors driving crude towards that are in force,'' said Dariusz Kowalczyk, chief investment strategist at CFC Seymour Ltd. in Hong Kong. ``The supply disruption in the North Sea has given further impetus'' to prices.
Crude oil for December delivery gained as much as $1.99, or 2 percent, to $98.58 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since trading began in 1983. It was at $98.25 at 9:51 a.m. in London. Futures have climbed 67 percent in the past year.
Yesterday, oil rose $2.72, or 2.9 percent, to settle at $96.70 a barrel, a record close.
Brent crude oil for December settlement rose as much as $1.93, or 2.1 percent, to a record $95.19 a barrel on the London-based ICE Futures Europe exchange. It was last at $94.89.
Conoco, BP
Workers on ConocoPhillips's Ekofisk A, B and C platforms, as well as Eldfisk A and B, were being moved to land or to safer North Sea sites yesterday, said Kurt Mikkelsen, a ConocoPhillips spokesman. BP is moving 150 workers from its Valhall field and expects the platform's 80,000 barrel-a-day oil and gas output to come to a halt later today, spokesman Jan Erik Geirmo said.
``The $100 jackpot is imminent now, despite the fact there aren't really oil fundamentals that can justify such a level,'' said Kamel al-Harami, an independent oil analyst in Kuwait City. ``It is only a matter of time for both consumers and producers to be hurt.''
Prices have passed the previous all-time inflation-adjusted record reached in 1981, when Iran cut exports. The cost of oil used by U.S. refiners averaged $37.48 a barrel in March 1981, the Energy Department said, or $84.73 in today's money.
Oil has risen 60 percent in U.S. dollars this year compared with 44 percent in euros, 53 percent in yen and 50 percent in British pounds.
``The weakness in the dollar is giving investors the chance to buy oil at a cheaper price,'' said Tetsu Emori, a fund manager at Astmax Futures Ltd. in Tokyo. ``Any further declines will only push oil higher.''
Stockpile Fall
Today's Energy Department report will probably show U.S. oil stockpiles fell 1.5 million barrels last week, based on the median estimate in a Bloomberg News survey of 16 analysts. Inventories held 312.7 million barrels on Oct. 26, the Energy Department reported last week.
Gold reached a 27-year high and silver rose to the most in 26 years as rising oil prices and a slumping dollar deepened concern that inflation will accelerate. Wheat, corn, soybeans and palm oil also gained.
Refiners probably used 86.8 percent of their plant capacity, 0.6 percentage points more than a week earlier, and the first increase in four weeks, according to the survey.
``Expectations of an inventory drawdown and the North Sea supply disruption are the major drivers now,'' Astmax's Emori said. ``That's prompting investors to chase up the price.''
Last Updated: November 7, 2007 04:52 EST