Oil prices climb above $89 level

Crude oil for November delivery settled at $89.47 a barrel in New York, after rising $2.07. Brent crude hit $84.6.

The price of oil has been hitting record levels in recent days amid tensions between Turkey and Kurdish rebels in northern Iraq.

And a lower dollar has made commodities a more attractive investment.

The dollar hit a record low against the euro on Thursday triggered by US economic data, adding to expectations that the US will lower interest rates.

Coupled with geopolitical tension in Turkey, this has pushed up oil prices with analysts now talking about the possibility of the commodity hitting the $100 mark.

The move by Turkey's parliament to approve a government plan to attack rebels has added to fears of instability in the area, though imminent military action is not expected.

Opec action?

Comments by a member of the oil producers' cartel Opec that the group may now consider boosting output also helped the oil price pull back.

Nigerian oil minister Odein Ajumogobia said Opec leaders could now meet as early as 17 November, three weeks ahead of their next planned meeting.

"We are still a month away and it depends what transpires before then," he added.

Prices were also supported by figures showing a smaller-than-expected increase in US gas stocks last week.

Oil prices have quadrupled since 2002 because of strong demand from fast-growing economies such as China and India, allied to instability in oil-producing nations in the Middle East and Africa.

The cost of oil is still below the inflation-adjusted level of about $90 a barrel seen in 1980, when spiralling prices helped contribute to a recession in the US.

Last month, Opec said that it would be boosting its production by 500,000 barrels a day from the beginning of next month, to cope with resilient global demand for oil.

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