OPEC decision pushes oil to record high

New York -- U.S. oil prices rose to a record $78.23-a-barrel settlement Tuesday after OPEC decided to raise its daily output by 500,000 barrels a day.

The 74 cents, or 0.95 percent, increase in light, sweet crude for October delivery surpassed the previous record $78.21 closing level set July 31 on the New York Mercantile Exchange.

October crude had climbed as high as $78.30 during the session.

The 12-nation Organization of the Petroleum Exporting Countries, responsible for about one-third of the world's crude supply, said Tuesday 10 of its members agreed to increase OPEC's production ceiling to 27.2 million barrels a day from 25.8 million barrels a day starting Nov. 1 to meet an expected surge in winter consumption and push prices down.

The 2 percent increase is OPEC's first official rise in more than a year.
October natural gas rose 4 cents, or 0.73 percent, to $5.93 per 1,000 cubic feet.

Heating oil added 1.11 cents, or 0.51 percent, to $2.1827 a gallon.
Reformulated-gasoline blendstock for oxygen blending edged up 0.25 cent, or 0.13 percent, at $1.9811 a gallon.

AAA said the average U.S. retail regular unleaded gasoline price was $2.814 a gallon, down 0.5 cents from Monday's $2.819 a gallon.

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Copyright 2007 by United Press International.