London: The price of crude oil surged to a record peak above 99 dollars per barrel in New York today on the back of the falling US dollar and tight global crude supplies, traders said.

They failed to top USD 100,despite official data which showed that US energy stockpiles fell greater than expected last week. In early trading today, New York s main contract, light sweet crude for January delivery, rocketed to an historic USD 99.29. Following the release of data on US energy inventories, the contract stood at 98.19 per barrel, up 16 cents from yesterday's close.
In London, Brent North Sea crude for January delivery jumped to an all-time pinnacle of USD 96.53 per barrel and later stood at USD 95.76,up 27 cents.

"Oil soared to over USD 99 a barrel on continued concerns over supply tightness," Sucden analyst Nimit Khamar said in London. "However, oil has relinquished those gains, as some looked to take profits after the impressive rally."
The US Department of Energy announced today that reserves of US crude oil had sunk by 1.1 million barrels in the week ending November 16. Analysts consensus forecast had been for a gain of 750,000 barrels.

Oil prices "certainly may rally later on in the session," Altavest trader Tom Hartmann said after release of the data. "The market obviously was wrong with expectations of gains in the inventories and it seems there is some hesitation as to which way to push the market." The DoE added that US reserves of distillates, including crucial heating fuel and diesel, dived by 2.4 million barrels last week.

Source : PTI