Oil prices continue to break records

| Tuesday, October 16, 2007

The price of crude oil set yet another record in trading on Tuesday, soaring almost to $88 a barrel.

Light, sweet crude hit a new intra-day high of $87.97 a barrel on the New York Mercantile Exchange, before falling back down nearly 30 cents by the close of trading.

The Associated Press reported that fears that Turkey will attack Kurdish rebels in Iraq, thereby disrupting oil supplies in the region, were driving the market higher.

Oil supplies coming out of that region have already been erratic, and analysts say a total disruption would only send oil prices even higher.

Other factors, such as a weak U.S. dollar and low U.S. crude inventories, also contributed to the rise in prices, according to industry analysts.

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