Crude oil heads for top price in years

CRUDE oil in New York, which is headed for the highest average price in 20 years, rose on speculation that an Energy Department report today will show that inventories fell last week.

Supplies in the biggest oil consumer probably declined by 544,000 barrels from 274.5 million barrels, according to a Bloomberg survey of nine analysts polled before release of the report. Prices in New York have risen 5.5% this year and have averaged $31, the highest level since the New York mercantile Exchange began crude-oil futures trading in 1983.

“We’re a little concerned that the crude-oil numbers will be bullish today,’ said Kyle Cooper, a Citigroup Inc. analyst in Houston. “This has been quite a year with prices rising because of political problems. The year began with the war in Iraq, Venezuelan production hasn’t come back and there have been a number of problems in Iraq since the war.” Crude oil for February delivery was up 12 cents, or 0.4%, at $32.91 a barrel at 10.01am in New York. Prices were up 0.2% this week and 8.2% this month.