World oil prices strike fresh record

by uusjio | May 8, 2008 at 09:16 pm | 170 views | 2 comments

Singapore (ANTARA News) - World oil prices continued their record-breaking run on Thursday, reaching a fresh intra-day peak near $124 a barrel despite a larger-than-expected rise in U.S. crude stocks.

The record of $123.87 reached by New York's main oil futures contract, light sweet crude for June delivery, slightly exceeded the previous intra-day high of $123.80 reached Wednesday in U.S. trading.

The contract later was a penny higher at $123.54 in Asian afternoon trade from its record close of $123.53 in New York.

Brent North Sea crude for June delivery was 11 cents higher at $122.43 a barrel.

In London on Wednesday the contract touched an all-time peak of $122.70, before settling up $2.01 at $122.32.

Oil prices have crashed through records every day this week, jumping at least $7.

"Right now the market is trading by momentum as market participants tend to selectively focus on bullish news," said Victor Shum, senior principal at Purvin and Gertz energy consultancy in Singapore.

"Heady prices point to a significant risk of a correction," he told AFP

Some economists fear that surging oil prices could crimp U.S. economic growth, and Wall Street tumbled on Wednesday after the latest spike in oil prices. (*) end

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jordan

at 10:56 on May 9th, 2008

Make that $126/barrel.

uusjio

at 22:46 on May 9th, 2008

Thanks Jordan!

Update: Oil over $126 a barrel

Crude prices surge to new record, supported by weakening dollar, supply concerns.

Oil prices hit a new record high above $125 Friday as a weaker U.S. dollar drove investments into commodities.

U.S. crude for June delivery rose as high as $126.20 a barrel in electronic trading on the New York Mercantile Exchange early Friday morning. On Thursday, the contract rose to a record settle of $123.69 a barrel.

Comments Thursday from European Central Bank president Jean-Claude Trichet signaling that the bank was unlikely to consider interest rate cuts helped strengthen the euro against the U.S. currency.

By midday in Europe, the euro stood at $1.5462 compared to $1.5404 in late trading Thursday night in New York. The dollar was also weaker Friday against the British pound and the Japanese yen.

Investors view commodities such as oil as a hedge against inflation, and some analysts think the dollar's protracted decline is the main reason behind oil prices doubling from a year ago. Also, a weaker dollar makes oil cheaper to investors overseas.

A prediction by analysts at Goldman Sachs ...