Crude touches 114$/barrel. Have an short term target of 120$/barrel
Oil prices steadied Wednesday above $113 a barrel after setting a record on growing concerns about insufficient global supply.
Oil surged to an all-time high of $114.08 a barrel Tuesday after a high-profile report by the International Energy Agency said Russian oil production dropped this year for the first time in a decade.
Analysts said growing investor demand for commodities _ which have performed better than other financial instruments _ also helped prop up prices.
“This is really driven by investors purchasing oil because returns have simply outpaced those of stocks and bonds,” said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. Shum said he didn’t think supply and demand fundamentals were that strong, but added that “oil’s price rise seems unstoppable.”
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