Oil Breaks $98 in Advance of Supplies Report

Pipeline attack in Yemen and weak dollar contribute to prices
By Lucas Laursen,  Newser Staff
Posted Nov 7, 2007 4:11 AM CST
The sun shines on a pump handle in a car at an Exxon station, Tuesday, Nov. 6, 2007 in Harrisburg, Pa. Oil futures jumped to a new record above $97 a barrel Tuesday after bombings in Afghanistan and...   (Associated Press)
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(Newser) – Oil prices continue to break records, busting beyond $98 a barrel before settling at $97.98 in Singapore today, reports AP. Short-term effects like Monday’s attack on a Yemen pipeline contributed to the hike. Last week’s storms reduced Mexican exports to the US, and traders expected this winter’s demand to remain strong.

Production at some North Sea oil platforms was also on hold due to severe weather, driving Brent crude prices to $94.62 a barrel on the London exchange. Weekly inventory reports will be released today by the U.S. Energy Information Administration. In a monthly report yesterday, the EIA said it expects demand to exceed supply in the next year despite higher prices.