Oil Hits Record $100 a Barrel

Disruptions in Nigeria, Mexico stoke supply concerns
By Nick McMaster,  Newser Staff
Posted Jan 2, 2008 11:11 AM CST
In this Nov. 21, 2007, file photo, Santiago Santos fuels up his car at a gas station in San Jose, Calif. High demand promises to keep oil prices rising. (AP Photo/Marcio Jose Sanchez, File)   (Associated Press)
camera-icon View 2 more images

(Newser) – Crude oil prices jumped $4.02 today to push past $100 a barrel for the first time as Nigerian violence, disrupted Mexican exports, and the specter of dipping US stockpiles stoked supply fears in the face of ever-rising energy demands, CNNMoney reports. The previous record was $99.29, set November 20.

"It is a combination of things ... a weaker dollar—on expectations of further interest rate cuts—and Nigeria," said one futures trader. Bands of armed men yesterday attacked police stations and other targets in Nigeria's main oil city, Port Harcourt, causing investors to believe there would be further disruptions in oil shipments from the world's eighth largest oil exporter.