Oil soars to record above $144 amid concerns over hefty drop in US stockpiles, Iran conflict
KUALA LUMPUR, Malaysia (AP) -- Oil soared to a record above $144 a barrel Thursday in Asia, fueled by concerns over a larger-than-expected drop in U.S. stockpiles and the threat of conflict with Iran.
Expectations that the European Central Bank will raise interest rates later Thursday was expected to weaken the U.S. dollar and drive oil prices even higher, as investors turn to commodities as a hedge against a falling greenback.
"Even though the rise of European interest rates has been priced into oil, an official announcement by the ECB will still add momentum to oil prices," said Victor Shum, an analyst with Purvin & Gertz in Singapore.
Prices may also be lifted with increased buying before U.S. oil markets close Friday for the Fourth of July holiday.
"There are numerous supply-side concerns that support a strong pricing. As we head into a long weekend in the U.S., it's likely that we will see pricing bubbling away at $145," Shum added.
Midday in Singapore, light, sweet crude for August delivery was up 68 cents at $144.25 a barrel in Asian electronic trading on the New York Mercantile Exchange. Earlier in the electronic session, it rose to a record of $144.44 a barrel.
That was after setting a new closing record for floor trade Wednesday at $143.57 -- a full $2.60 above the previous close.
"Even though the rise of European interest rates has been priced into oil, an official announcement by the ECB will still add momentum to oil prices," said Victor Shum, an analyst with Purvin & Gertz in Singapore.
Prices may also be lifted with increased buying before U.S. oil markets close Friday for the Fourth of July holiday.
"There are numerous supply-side concerns that support a strong pricing. As we head into a long weekend in the U.S., it's likely that we will see pricing bubbling away at $145," Shum added.
Midday in Singapore, light, sweet crude for August delivery was up 68 cents at $144.25 a barrel in Asian electronic trading on the New York Mercantile Exchange. Earlier in the electronic session, it rose to a record of $144.44 a barrel.
That was after setting a new closing record for floor trade Wednesday at $143.57 -- a full $2.60 above the previous close.
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