Crude oil prices hit all-time highs on 11 October 2004. New York light sweet crude for November delivery closed at $53.64 a barrel, a record settlement, after briefly reaching $53.80. London's Brent North Sea contract finished at $50.66, surpassing $50 for the first time in the contract's 16-year history.
Labor strikes in Nigeria and Norway fueled the advance. Nigerian unions began a four-day walkout against rising fuel costs, squeezing output from Africa's largest producer, which exports about 2.5 million barrels per day. In Norway, the world's third-largest crude exporter, around 200 offshore workers on strike since July were set to extend their action. Both nations produce light sweet crude, in high demand ahead of the northern-hemisphere winter.
Low US commercial inventories and strong demand across the United States and Asia amplified supply worries. Refco analyst Marshall Steeves said $55 was the next price target, with $60 a plausible near-term level.
Saudi Arabia's oil minister insisted no shortage existed and the kingdom was pumping at full capacity, but markets paid little heed. Traders noted that OPEC output leans toward heavy, sulphur-rich grades rather than the light crude the market currently needs. Prices have risen about 65 percent since January 2004 and more than doubled from roughly $20 a barrel at the start of 2002.
Historical summary. TurkishPress restated this AFP wire report, first published in October 2004, in its own words.