Oil hits another record high

| Wednesday, October 06, 2004

Oil closed at $52.02 a barrel on Wednesday, Oct. 6, another record high on the New York Mercantile Exchange.

The price of crude oil closed above $50 a barrel for the first time Friday, Oct. 1, and rose to close at $51.09 Tuesday, Oct. 5.

Media outlets and analysts continued to attribute the sky-high price to reduced U.S. output, a drop caused by damage to production facilities in the Gulf of Mexico in the wake of several hurricanes. But the price has been pushed up recently by a combination of factors – in addition to the hurricane activity – ranging from unrest in oil-producing Nigeria and increased demand from China to damage to oil facilities from insurgent attacks in Iraq.

Diesel is already running at $2 or more a gallon in every region of the United States, and winter heating oil season – which often competes with diesel for available crude – is just around the corner.