Oil adds $5 barrel
The price of oil traded up more than $5 US on Thursday after Libya hinted at a production cut and the head of OPEC said prices could top $150 a barrel this year.
On the New York Mercantile Exchange, light sweet crude for August delivery rose $5.09 to settle at $139.64.
Earlier, oil hit an intraday peak of $140.39. That marked the first time the near-month contract for oil had surpassed $140. The previous near-month record high was $139.89 for the July contract reached on June 16.
Oil shot up on comments from Chakib Khelil, president of the Organization of the Petroleum Exporting Countries, who said he thinks the price for crude could rise to between $150 and $170 a barrel this summer. He said he sees prices declining after that, and doesn't think oil will hit $200.
Adding to oil's rise was a statement from Shokri Ghanem, the head of Libya's national oil company, who said the country might cut crude production. According to reports, Ghanem said he believes oil markets are well-supplied.
"[Ghanem], the nation's top oil official, declined to say when a decision would be made on whether to lower production, or give any indication of the size of the cut under consideration," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Conn.
With files from the Associated Press
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