Oil price flies to record high beyond 146 dollars

LONDON (AFP) – The price of oil set a record high above 146 dollars a barrel here on Thursday owing to falling reserves of US crude, simmering tensions over Iran and a weak dollar, traders said.

Russian energy giant Gazprom meanwhile forecast that oil would “very soon” hit 250 dollars a barrel.


Brent North Sea oil for August delivery surged to a life-time peak of 146.69 dollars a barrel after breaching 146 dollars for the first time earlier on Thursday.

New York’s main oil contract, light sweet crude for August delivery, leapt to an all-time pinnacle of 145.85 dollars on Thursday.

“Prices rose to set new all-time highs … supported by a decline in US crude oil inventories,” said Barclays Capital analyst Kevin Norrish.

After hitting new heights, Brent crude stood at 145.13 dollars a barrel in electronic deals, up 87 cents from Wednesday’s close as traders banked profits. New York crude was 28 cents higher at 143.85 dollars.

Oil prices, which have doubled in value over the past year, were driven by news that American crude stockpiles fell by 2.0 million barrels to stand at 299.8 million barrels in the week to June 27.

AFP