Supply fears push oil above $92

Oil prices have risen to yet another record after an unexpected fall in US crude stockpiles added to fears over supplies for the winter months ahead.

US light, sweet crude rose $1.74 to $92.22 a barrel before falling back to $91.86 by close of trade in New York.

Meanwhile London Brent also reached a high of $89.27 before later settling at $88.69, up $1.21 cents on the day.

Analysts said threats of US sanctions against Iran and tension on the Iraqi border had also helped the rally.

According to some analysts, oil may well reach $100 a barrel.

US crude oil stocks unexpectedly fell by 5.3 million barrels last week.

Earlier in the week, prices had retreated from previous highs following concerns about the health of the US economy and expectations of more output from oil producers' cartel Opec.

Despite the latest price surge, Opec members said they would stick to their existing production targets.

The group has already pledged to increase production by 500,000 barrels a day starting from 1 November, but the US is calling for an additional rise.

Source - BBC