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Cold and output cap hike oil price

Monday 15 November 1999 19:02 EST
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OIL PRICES stormed higher yesterday bolstered by a cold snap in Europe and the United States and more speculation from Opec ministers that output curbs will be retained beyond March.

London Brent blend futures for December hit $25 a barrel, the highest oil price since October 1996. Over $25.06 will take Brent to its highest since the 1990-1991 Gulf crisis, when oil briefly ballooned above $40 a barrel.

Dealers said expectations that tight oil inventories would be drained quickly in coming weeks had brought fresh speculative buying into a market where many now see the possibility of $30 oil this winter.

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