A sharp decline in U.S. petroleum supplies, a weak U.S. dollar, comments from OPEC, and tensions in the Middle East contributed to the near-perfect storm that sent crude prices above $90 per barrel today. Crude for December delivery rallied $3.36 to end at a record $90.46 per barrel after tagging a new all-time intraday high of $90.60 per barrel on the session. In a report on the Wall Street Journal, the Organization of Petroleum Exporting Countries (OPEC) said that it is not involved in any discussions on a further increase in oil output beyond the 500,000 barrels per day due in November. Secretary General Abdalla el-Badri also told the Journal that there is no shortage of oil in the market. This interview, combined with a greater-than-expected decline in U.S. crude supplies provided the impetus for today's record close.
Elsewhere, gold for December delivery added $5.40 an ounce to close at $771 today. A weak U.S. dollar and rising crude prices were cited for the sharp advance. What's more, today's sharp losses in equities and renewed concerns regarding the U.S. housing market reinvigorated a flight to safety bid for the malleable metal.