Oil prices have today hit record levels of over $87 a barrel due to conflicts in the Middle East and concerns over output.
In Europe, the prices of US light, sweet crude rose to $87.97 per barrel, while the price of Brent crude increased to $83.99.
The surge in prices followed reports of Turkish forces attacking an Iraqi border village, claiming the area was harbouring 3,500 Kurdistan Workers’ Party (KWP) rebels. The KWP wants to see an independent Kurdish state created in the Middle East.
The Turkish government is preparing a motions to make a military incursion into northern Iraq, which has raised fears that oil supplies might be disrupted.
However, the price of oil is below the inflation-adjusted figure of $90 per barrel seen prior to the US recession in the 1980’s.
Most analysts suspect that pressure on supply is likely to cause prices to rise further.
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