World oil prices hit record peaks today, smashing through $85 in New York in the face of heightened tensions between Turkey and Kurdish rebels in the northern region of crude producer Iraq.
The price of North Sea Brent crude broke through the $82 a barrel threshold for the first time, rising to $82.23.
New York crude showed a hefty gain of $1.20 at $84.89 this evening, after earlier spiking to an historic $85.30 per barrel.
The market was likewise under pressure from fears of a supply shortage ahead of the North American and European winter.
The powerful OPEC oil exporters' cartel, meanwhile, froze its estimate for world crude demand growth in 2007 despite the record-breaking news.
Oil market traders 'are still worried about possible tension with Turkey and Iraq on the northern borders,' explained Sucden analyst Robert Montefusco.
It's being discussed in Turkish parliament at the moment over whether it is legal for them to go and invade.
He added: 'There's no lost production at the moment, so it's only perceived that we could lose some production if any of the pipelines are affected in that region from Iraq.'
Elsewhere, the Organisation of Petroleum Exporting Countries (OPEC) forecast that 2007 world oil demand growth would stand at 1.3 million barrels per day (bpd) or 1.5%.
The estimate, contained in OPEC's monthly report for October, was unchanged from the previous figure given in September.
The Vienna-based cartel added that demand for fuel and heating oil in the fourth quarter to December 'is forecast to be strong.'
