Oil Rises to Record High, Again

Breaks $93 a barrel on news of Mexican storm
By Lucas Laursen,  Newser Staff
Posted Oct 29, 2007 6:28 AM CDT
Graphic shows crude oil prices; 1c x 3 inches; 46.5 mm x 76.2 mm   (Associated Press)
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(Newser) – Oil prices topped $93 today, breaking another record on news that Mexican production would drop by 20% due to a storm. "This is on top of what has already been simmering,” said an analyst in Singapore. Prices have been breaking records for a week due to US-Iran tensions and Turkish-Kurdish border skirmishes. Experts also cite the weak American dollar.

Prices are close, in inflation-adjusted dollars, to the all-time 1980 high of $38. Analysts say the risk premium is driving prices towards $100 a barrel, though shortages were part of the high price. Government reserves were found to be lower than expected last week, driving an additional 9% surge in prices.