Oil prices retreat slightly after hitting $96 a barrel

New York: Oil prices have retreated slightly after hitting the $96 a barrel mark on Thursday.

However industry analysts are still expecting the price to top the $100 mark before the end of the year.

The price of crude soared to $96.24 in overnight trade, but eventually fell back to $93.49 a barrel.

A combination of factors is likely to keep the price rising though, with most analysts pointing a finger at strong demand from the developing world and the continued poor performance of the dollar.

Volatility in the Middle East is also a factor with clashes between Turkey and Kurdish fighters and northern Iraq and fears over relations with Iran and the US fuelling fears.

There are also concerns about geopolitical issues such as a clash between the US and Iran, and an escalation of hostilities between Turkey and rebel Kurdish fighters based in the northern areas of Iraq.

A report detailing that US crude stocks had fallen by 3.9m barrels, the US is the largest oil consumer in the world, triggered the first price hike on Wednesday.