Oil price hits new high
Jan 4 2008 by Iain Laing, The Journal
THE price of oil set a new record above $100 a barrel yesterday as official figures revealed worse-than-expected US oil stocks.
Prices for light, sweet crude reached $100.09 a barrel after the US government said oil reserves fell by four million barrels last week.
The record high came a day after oil prices touched the $100 level amid fears over declining stocks, a weak dollar and recent geopolitical troubles, including in oil-producing Nigeria.
It could spell more misery in the coming weeks for UK motorists, who have already faced record petrol prices on the forecourt this year.
According to the US Department of Energy, stocks of US crude fell by four million to 289.6 million barrels last week, more than the 1.7 million drop widely expected by analysts.
The drop in US crude reserves was the seventh straight weekly fall.
There were hopes yesterday that the drop may be the last for some months, as high prices curtail spending on fuel and stockpiles start to recover.
In the UK, drivers had to pay an average of 103.3p for a litre of petrol on Wednesday, beating the previous record of 102.92p set on Boxing Day.
It meant the cost of filling a typical 50-litre tank was £7.36 more than a year ago.
