Oil Report

NYMEX crude extends rise to record above $88/bbl

NEW YORK, Oct 16 (Reuters) - U.S. crude oil futures rose sharply on Tuesday, extending their record run above $88 a barrel.

Turkey’s troubles on its Iraqi border, a weak dollar, strong speculative buying and supply concerns heading into the Northern Hemisphere winter all were cited by sources as factors lifting prices.

On the New York Mercantile Exchange at 12:29 p.m. EDT (1629 GMT), November crude CLX7 was up $1.72 or 2.0 percent at $87.85 per barrel, trading from $86.13 to $88.20, a record.

In London, November Brent crude LCOX7 was up $1.38 or 1.67 percent at $84.13 a barrel, trading $82.84 to $84.49. The November contract expires on Tuesday.

OPEC Secretary General Adbullah al-Badri said in a statement on Tuesday that market speculators were responsible for high prices, repeating OPEC’s assurances about the market being “very well-supplied.” [ID:nWLA1427]

He also cited refinery bottlenecks, seasonal maintenance, ongoing geopolitical problems in the Middle East and fluctuations in the U.S. dollar.

Earlier, officials from Libya and Indonesia said that OPEC has done what it can to satisfy global demand and pumping more crude will do little to halt oil’s rally. [ID:nL16337780]

OPEC agreed in September to boost output by 500,000 barrels per day from Nov. 1 after cutting 1.7 million bpd in two cuts, one late in 2006 and one in early 2007.

An analyst from the U.S. Energy Information Administration said Tuesday afternoon that a tight global oil market needs an OPEC output boost.

Turkish Prime Minister Tayyip Erdogan said on Tuesday that if parliament authorizes an attack on Kurdish separatists in northern Iraq it does not necessarily mean a military incursion is imminent. [ID:nL16401106]

The dollar had its biggest one-day drop in three weeks against the Japanese yen and pared gains versus the euro after a report showed a sharp outflow of funds from the United States in August. [ID:nN16459136]

Treasury said the country registered a record net $163 billion outflow in August. For details, see [ID:nN16446950]

U.S. oil inventory data from the Energy Information Administration due on Wednesday is expected to show crude supplies rose 1.7 million barrels in the week to Oct. 5, a Reuters poll of analysts on Monday showed. [EIA/S]

NYMEX November heating oil HOX7 was up 2.55 cents or 1.11 percent at $2.3327 a gallon, trading from $2.2924 to $2.3390, a record high.

NYMEX November RBOB RBX7 was up 1.59 cents or 0.74 percent at $2.1734 a gallon, trading from $2.1449 to $2.2019.