Kuwaiti crude breaks $100 barrier, rises $1.78


19/07/2012 22:55 AST  Agencies

Price of Kuwaiti crude oil hit the 100 US dollars barrier after it increased $1.78 per barrel on Tuesday, reaching $100.57 pb, compared to $98.79 pb the day before, said Kuwait Petroleum Corporation (KPC) on Wednesday.

This hike came after reports from the American Petroleum Institute showed that the US crude reserve had dropped drastically last week. Tensions from the Iranian nuclear file and the fears surrounding the blocking of the sea-borne oil exports from passing through the Strait of Hormuz has played major factor.

In more news, oil retreated slightly on Wednesday, snapping five days of gains as US Federal Reserve Chairman Ben Bernanke offered few signs of further monetary stimulus and a gloomy view of the economy of the world's top oil consumer.

Brent crude slipped 38 US cents to $103.62 a barrel by 1017 GMT, after settling 63 cents higher on Tuesday. US oil fell 44 cents to $88.77 a barrel after ending up 79 cents.

Bernanke in his testimony to the Senate Banking Committee said the Fed stood ready to offer more stimulus as needed but stopped short of signaling action in the near term.

He also said recovery was being held back by anxiety over Europe's debt crisis and expressed unease over a stagnant jobs market.

A slightly more downbeat outlook on prospects for the global economy saw investors sell Brent crude, with some locking in profits after a 16 percent increase in prices from the lows for the year touched last month.

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