World oil prices hit record highs on Monday, breaking through the 85 dollar mark in New York, amid heightened tensions between Turkey and Kurdish rebels in the northern area of oil producer Iraq. Light crude has seen a 43 percent increase, while Brent is up 38 percent on last year.
Oil market traders fear that Turkish forces will chase Kurdish rebels into Iraq, disrupting oil supplies. OPEC believes the forecast for fuel and heating oil in the fourth quarter to December “ is forecast to be strong.” While world oil demand will follow high seasonal consumption patterns as winter hits. OPEC puts world oil needs at 1.8 billion barrels per day for the last three months of 2007.