Oil at record high above 86 dollars in Asia

SINGAPORE, Oct 16, 2007 (AFP) – Oil traded at a record high in Asia of 86.29 dollars a barrel on Tuesday amid mounting tension between Turkey and Kurdish rebels in Iraq. In early morning trade New York’s main oil futures contract, light sweet crude for delivery in November, was 16 cents higher than the 86.13 dollars reached in late New York trades on Monday.

The price of Brent North Sea crude was not immediately available but the contract had also surged earlier in London trade, settling up 2.20 dollars at a record 82.75 dollars a barrel.

Brent’s previous record was 81.05 dollars per barrel reached late last month, while New York crude has now surpassed the former all-time peak of 84.10 dollars reached during intra-day trade last month.

“The tensions on the Turkish-Iraqi border have really pushed the price up,” said Adrian Bingham-Walker at CMC Markets.

Turkey moved a step closer Monday to a possible incursion into northern Iraq as the government sought parliament’s approval for military action against Kurdish rebel bases despite US opposition. .