Nov. 7 (Bloomberg) -- Crude oil rose above $98 a barrel for the first time in New York after the dollar slid to a record low and analysts forecast U.S. stockpiles declined for a third week.
BP Plc and ConocoPhillips plan to reduce production in the North Sea starting tonight before storms and 36-foot waves batter the area. The dollar slumped, pushing up prices of commodities based in the currency, and traders expected a 1.5 million barrel drop in U.S. crude inventories.
``The $100 mark is inevitable,'' said Michael Davies, an analyst at Sucden (U.K.) Ltd. in London. ``We're expecting another draw in crude stocks today, and that could be another thing everyone jumps on.''
Crude oil for December delivery gained as much as $1.92, or 2 percent, to $98.62 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since trading began in 1983. It was at $97.79 at 1:48 p.m. in London. Futures have climbed 66 percent in the past year.
Brent crude oil for December settlement rose as much as $1.93, or 2.1 percent, to a record $95.19 a barrel on the London-based ICE Futures Europe exchange. It was last at $94.30.
Production at BP's 80,000 barrel-a-day Valhall field will come to a stop tonight after an evacuation of about 150 workers from the site, BP spokesman Jan Erik Geirmo said. Production from five platforms at ConocoPhillips' North Sea Ekofisk and Eldfisk fields is also set to halt tomorrow, ConocoPhillips spokesman Stig Kvendseth said.
For Full Story: Bloomberg
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