Oil hits record $84 on supply concerns

[CGowen]

By Matthew Robinson

NEW YORK (Reuters) - Oil hit a record above $84 a barrel on Friday on mounting tensions between Turkey and northern Iraq and lingering supply concerns ahead of the Northern Hemisphere winter.

U.S. crude settled up 61 cents at $83.69 a barrel, after trading up to a record $84.05 a barrel earlier. London Brent crude climbed 40 cents to $80.55 a barrel.

Though oil prices have quadrupled since 2002, when adjusted for inflation the price is still below the $90-a-barrel peaks at the time of the Iranian revolution in 1979.

Prices jumped after the Kurdistan Workers Party said it would move back into Turkey from northern Iraq and target the Turkish government, highlighting tensions in a region that pumps a third of the world's oil.

Iraq's oil exports through Turkey have been virtually idle since the U.S.-led invasion of Iraq in March 2003 due to sabotage attacks, and most of Iraq's oil is exported from the country's south.

...


http://www.reuters.com/article/hotStocksNews/idUSSP10407020071012

[TomInTib]

1. And to think...

I surrendered all of my mineral rights to my ex when oil was at $28/bbl.

Damn.

[razzleberry]

2. gas down 5 cents

2.53 Friday night
2.48 Saturday night

[Delphinus]

6. Dang!

Up here in Indiana, we're paying $2.76.

[skids]

3. Oil's "inflation adjusted" price...

http://www.inflationdata.com/inflation/inflation_rate/Historical_Oil_Prices_Chart.asp

...but they are damned if they do and damned if they don't within a year or so... either they will have to admit that the CPI-U is at best an overly mild inflation indicator, or they will no longer be able to include this line in their boilerplate.

They already lost the ability to say this with gas prices...

http://zfacts.com/p/35.html

[CGowen]

4. I think everybody knows that CPI is a joke...n/t

[GliderGuider]

5. And there have been trades over $85 this morning

Probably trading up the Turkish Fear Premium. $100 by mid-winter?