US jitters push oil to new peaks

Oil prices briefly raced to new peaks before quickly running out of steam as US data showed demand for fuel was rising at a slower rate than last year.

In the US, light sweet crude jumped to $71.80, the highest since trading began in 1983, before dipping back to $70.90.

President Bush also refused to rule out the use of force to prevent Iran developing nuclear weapons, declaring that all options were “on the table”.

“It’s like the Cuban Missile Crisis,” said Michael Coleman, managing director of Singapore-based hedge fund Aisling Analytics.

“We are just waiting for someone to blink.”

BBC