U.S. Crude Oil Futures Soar Above $30 Mark

Crude oil futures soared above $30 a barrel in early trading today on continued fears of supply disruptions because of the Persian Gulf crisis.

The price of the benchmark grade of U.S. crude oil was up $1.17 at $30.94 per 42-gallon a barrel on the New York Mercantile Exchange. Light, sweet crude for October delivery rose 65 cents to $29.77 per barrel on Wednesday.

Traders said today’s sharp rise extended Wednesday’s gains, which came on harsh talk by Iraqi President Saddam Hussein and fears of shortages and signs of hoarding by U.S. consumers and distributors.

Also, news overnight that an American had been shot in the hand by an Iraqi soldier while trying to avoid capture in Kuwait increased fears of war in the region.

Oil prices have shot up since Iraq occupied Kuwait on Aug. 2 on fears that the world’s supply could be sharply reduced by fighting in the Middle East.

Andrew Lebow, senior broker and analyst for E. D. & F. Man International Futures Inc., said traders are anticipating disruptions in oil supplies in the next couple of weeks, as well as shortages as demand increases in the winter.

Refined products traded on the Merc also shot up this morning.

Home heating oil for October delivery was up 3.83 cents to 87.20 cents per gallon, after rising 0.98 cents on Wednesday. Unleaded gasoline was 2.98 cents higher to 95.25 cents per gallon, erasing Wednesday’s drop of 2.25 cents.