Oil crosses $90, nears 2-yr-high

Dec 23, 2010 |

Reuters

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Oil prices rise

Dec. 23: Oil prices climbed toward a two-year high on Thursday as cold weather in the United States boosted demand, slashed stockpiles and contributed to a stronger-than-expected rise in fuel consumption in 2010.

US crude for February rose 25 cents to $90.73 a barrel by 7.14 am (GMT), after settling at the highest level since October 2008 on Wednesday. ICE Brent crude traded 14 cents higher at $93.79.

Abnormally cold weather in the United States and Europe have spurred the rally above $90, the latest leg in a more than 40 percent rise from a year low in May. “Oil has risen as inve-ntories have fallen more than expected due to the cold weather in the northern hemisphere,” said Serene Lim, an oil analyst at ANZ.

Stockpiles in the world’s biggest oil user have fallen by 19 million barrels since November 26, roughly equivalent to one day of US fuel consumption and the biggest three-week drop since 1998.

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