LONDON, 27 February 2008 — The price of London’s Brent oil hit a record high $99.68 yesterday as trade was driven by reports of falling OPEC crude output ahead of the organization’s meeting next week, traders said. Brent hit the historic peak as the New York oil contract spiked once again to $101 per barrel — within sight of the record $101.32 set on Feb. 20.
Prices of $101 reflect widespread market expectations of a production cut by the OPEC crude producers’ group, OPEC President Chakib Khelil said in a statement to the Algerian press on Monday.
Khelil indicated the 13-nation Organization of the Petroleum Exporting Countries would not increase production at a meeting on March 5 in Vienna, leaving the issue to be keeping output steady or a reduction. “Either we hold (output) steady or we cut in order to restore market balance and stability,” Khelil said.
Late yesterday, New York’s main contract, light sweet crude for delivery in April, stood at $100.87 a barrel, up $1.64 from the close on Monday. Brent North Sea crude for April was up $1.75 to $99.40.