Crude oil rose to $100 a barrel for the first time in New York
Crude oil rose to $100 a barrel for the first time in New York, reflecting an industry struggling to find deposits at a time of record demand. Oil touched $100 today, extending last year’s 57 percent rally, boosted by speculation U.S. stockpiles dropped to a three- year low last week. Unrest in Nigeria, Africa’s largest oil producer, also spurred prices.
Three-figure prices may bring energy costs near the tipping point that will cause global economic growth to falter. China has more than doubled oil use since New York crude dropped to this century’s low of $16.70 a barrel on Nov. 19, 2001. That’s soaked up most of the world’s spare production capacity amid supply cuts in Nigeria, Iraq and Venezuela. Crude oil for February delivery rose $4.02, or 4.2 percent, to $100 a barrel at 12:10 p.m. on the New York Mercantile Exchange, the highest since trading began in 1983.
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