Oil Prices Approach $88

Updated from 8:09 a.m. EDT

Oil futures surged to yet another all-time high Tuesday as traders worried that fighting will break out between Turkey and Kurdish rebels in northern Iraq, destabilizing the political situation in the Middle East and potentially disrupting some petroleum shipments.

Light, sweet crude for November delivery jumped another $1.48 to $87.61 a barrel in New York trading and has now climbed nearly $4 in the past two sessions. Earlier, the near-term oil contract reached $88.20, a level never before seen.

Aside from the tension between Turkey and the Kurds, speculative buying and expectations of tight supplies have also factored into oil's recent run-up. ...