A drop in US crude stockpiles, anticipated colder weather in Northeast USA, a possible supply disruption from Iraq and production cuts by Organization of Petroleum Exporting Countries are all creating supply concerns. Crude oil prices are moving closer to US$50 dollars a barrel as traders remain concerned about the supply disruptions. Oil futures for February delivery rose as high as US$ 48.40 a barrel on the New York Mercantile Exchange London's International Petroleum Exchange saw February Brent crude-oil futures contract climb to US$ 45.21 per barrel.
Oil prices peaked in October 2004 at more than US$ 55 per barrel Will oil touch US$50 per barrel once again?
Some expected that rally would continue, while others said the 14% run up since the start of the year would induce enough profit-taking to push prices down for the time being.