Oil Reaches New High, Breaches $43/bbl Barrier.

Oil Daily, The, August, 2004

WASHINGTON -- Oil prices continue to astound. Crude futures climbed to new record of $43.85 per barrel Friday on worries that global supply may be stretched to its limits, as tensions linger over Russian oil producer Yukos' fight with the Kremlin.

The rise in prices came despite news that Russia's Finance Ministry gave Yukos until the end of August to pay the $3.4 billion owed under a June tax court ruling. The company estimates it will be able to pay $1.8 billion by that time.

Although the Yukos situation may not imminently take oil off the world market, traders continue to have fears about the standoff in Russia and whether there is ample world supply with Opec now pumping close to its capacity. The organization is producing near 30 million barrels per...