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Oil prices climb higher
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September 7, 2000: 4:56 p.m. ET
Prices at 10-year highs amid worries OPEC increase won't quell demand
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NEW YORK (CNNfn) - Surging oil prices neared a fresh 10-year high Thursday, amid continuing concern that OPEC won't raise production levels enough to slake world demand.
U.S. light sweet crude futures for October delivery gained 43 cents to $35.33 a barrel, a climb of 1.4 percent on the day, the highest level since Nov. 8, 1990. Earlier in the session, oil struck a new post-Gulf War high of $35.46, the highest intraday level since early November 1990.
October heating oil surged to fresh Gulf War highs and last traded at $1.0295 per gallon, an increase of 3.24 cents. Heating oil jumped to a new post-Gulf War high of $1.03 near the close, beating the previous high of $1.015.
Oil's continuing gains came despite a pledge from Saudi Arabia for a production increase of 700,000 barrels a day when the oil cartel gathers Sunday in Vienna. The Saudi-dominated Organization of the Petroleum Exporting Countries is under pressure from oil-consuming countries to increase production to ease fuel costs.
Saudi Crown Prince Abdullah gave the message to President Clinton during talks at a hotel in New York during a break in the U.N. Millennium Summit on Wednesday, the Reuters news agency reported, citing a source close to the talks between the two leaders.
In London, the benchmark October Brent contract last traded at $34.50, up 22 cents, stabilizing along with NYMEX crude after dipping on the news that Saudi Arabia would push for a higher OPEC output increase.
President Clinton said Thursday he told Abdullah that oil prices were too high and OPEC should take appropriate action on the issue.
U.S. oil traders and analysts say 700,000 barrel daily increase, if adopted, still would not be enough to satisfy the overheated markets. Some observers say production should increase by at least 1 million barrels per day.
The market had been expecting OPEC to invoke its price-band mechanism at its meeting Sunday to increase the cartel's output by 500,000 barrels per day. The mechanism calls for raising output by that volume when the price of a basket of crude exceeds $28 a barrel for 20 consecutive working days. 
-- from staff and wire reports
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