Oil Prices Hit Record High on Turkey-Northern Iraq Tensions

Oil prices rose to a record high Tuesday on concerns that Turkey will pursue Kurdish rebels into northern Iraq and disrupt oil supplies in the region.

The price of U.S. light sweet crude for November delivery hit an all-time high of $87.97 a barrel by mid-day in Europe on the New York Mercantile Exchange. The contract had closed Monday at a record high of $86.13.

Dealers say there is concern that an escalation of fighting along the Turkish-Iraqi border could affect oil production and pipelines in northern Iraq.

They say another factor driving up crude prices is low supplies of oil in the United States and other consumer nations heading into winter.

By VOA News