:bloated: x 1,000,000,000. this is just the beginning-buckle up kids.
Oil turns higher, close to record $75
Brent also hits all-time high above $74; investors keeping an eye on Iran, new front-month contract.
April 21, 2006: 1:38 PM EDT
LONDON (Reuters) - Oil prices turned higher and hit a record above $74 in New York Friday on fresh worries over Iran’s nuclear program and Nigeria’s supply outages.
U.S. oil for June delivery reached $74.95, up $1.26 at midday on the New York Mercantile Exchange. The May contract expired on Thursday at $71.95.
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In late Friday trade, Brent crude rose as high as $74.38, up $1.20 and a new all-time high.
U.S. oil has rallied around $12 this year on supply concerns and as investment funds plough billions of dollars into commodities. Profit-taking also took hold in precious metals markets on Friday.
A war of words between Iran and the West over Tehran’s resolve to continue its nuclear program have triggered concern that oil supplies could be disrupted from the world’s fourth biggest exporter.
OPEC powerless
Members of the Organization of Petroleum Exporting Countries were set to meet informally in Qatar on the sidelines of discussions between energy consumers and producers.
But several OPEC ministers have said there is little more the group can do to bring down high prices as it is already pumping at near full capacity.
“OPEC can deal with issues it can control but… we can’t do anything about the politics in the world,” said Algerian Oil Minister Chakib Khelil.
He said oil markets were well-supplied and crude inventories high, so any action to increase output would only be a gesture.
“The market would see through that. If we do something, it has to be credible. Why should we hide the truth?” he said.
OPEC has pumped 29.9 million barrels per day (bpd) so far in April, up 100,000 bpd from March, tanker-tracking consultancy Petrologistics said on Friday.
Prices hit fresh highs this week after U.S. gasoline stocks slumped to nearly 5 percent below levels this time last year.
While stocks fell, demand increased. Gasoline consumption in the world’s largest consumer was up 0.8 percent on the year.
