Crude oil prices reach new high
Updated: 2007-09-13 15:35
"A weakening US dollar is also adding fuel to the bullish case for oil," Turner added.
The dollar extended its slide against major currencies Wednesday, hitting a new record low amid expectations of a rate cut. The euro rose as high as US$1.3914 in late European trading, surpassing its previous record of US$1.3852 set on July 24.
Higher oil prices
On Wednesday, light, sweet crude for October delivery rose US$1.68 to settle at a record US$79.91 on the New York Mercantile Exchange.
In London, the price of Brent North Sea crude for October delivery was up US$1.30 to US$77.68 per barrel after rising as high as US$77.93, approaching the all-time high of US$78.60 on the exchange.
"This higher oil price clear complicates the job of the Fed as the specter of inflationary pressures emerging has just increased considerably," Turner pointed out.
"Looking ahead, while there may be some price retracement in the short term, the new psychological target is now US$90.00. Our expectation is for that target to be achieved in the first part of next year," he concluded.
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