Crude Prices Hit $40 a Barrel for the First Time Since 1990

The HeraldMay 08, 2004

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Summary


US oil futures shot past $40 a barrel yesterday for the first time in more than 13 years, as investors loaded up on contracts ahead of the weekend on renewed fears that terror attacks could disrupt oil supplies.

However, most analysts agreed the surge was a knee-jerk reaction by investors to the persistent violence in Iraq and militant strikes in oil-rich Saudi Arabia - but it had little to do with supply, which remained buoyant.

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Extract


Crude Prices Hit $40 a Barrel for the First Time Since 1990

Tony Wood, oil economist at the Royal Bank of Scotland, said: "From Opec's point of view, the...

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