Oil prices at new high on fears of Turkish attack in Iraq

Tuesday, October 16, 2007

Crude oil rose to an all-time high during trading in Asia to close at US$86.13 a barrel, up $2.44. The price of Brent Crude futures was at $84.40 at 6:39 a.m.. Crude stock futures at 6:08 a.m. (eastern time in the United States were trading at $87.52, nearing $90.00 a barrel.

The spike is being blamed on fears that Turkey is going to attack Iraqi Kurdish Militants of the Kurdistan Workers Party (PKK) after they killed 13 Turkish soldiers on October 7. On Monday, the Turkish military asked Parliament for permission to lead a mission into Iraq to hunt down militants.

There are at least 60,000 Turkish troops along the Iraq-Turkey border.