Oil reaches new record high
NEW YORK (AP) — Seems everywhere one looks, energy prices are rising.
Crude oil settled at a new record in New York at $117.48 a barrel, up 79 cents from Friday’s close. For crude, the move higher came after a Japanese oil tanker was attacked in the Middle East.
The 150,000-ton tanker Takayama was attacked about 440 kilometers (270 miles) off the Yemen coast in the Gulf of Aden while it was heading for Saudi Arabia, its Japanese operator, Nippon Yusen K.K., said in a statement posted on its Web site.
None of the ship’s 23 crew members was injured, and the extent of damage to the tanker was under investigation, the company said.
Kyodo News agency reported that the Japanese tanker was leaking fuel after it was fired on by a rocket launcher from a small boat.
No other details were immediately available. News of the attack pushed crude oil futures higher into record territory.
There’s clearly some geopolitical tension in the market, said Mark Pervan, senior commodity strategist at the ANZ Bank in Melbourne, Australia. This will die down, but the market is pretty jittery at the moment, he said.
At the pump in the United States, the national average for regular unleaded gasoline has topped $3.50 a gallon, according to AAA and the Oil Price Information Service.
Gas prices are expected to keep climbing, just like crude, which has surged to new records for six trading sessions in a row.
Oil prices are rising along with a host of commodities, from corn and wheat to gold and platinum, that are enticing speculators seeking hedges against a weak dollar. E-mail to a friend
Copyright 2008 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
