Oil price storms to record high near 114 dollars

LONDON (AFP) – The price of New York crude oil surged Tuesday to a new record high of 113.93 dollars a barrel, boosted by a weak US currency and tightening energy supplies, traders said.

Market participants also digested news that the crude-producing cartel OPEC left unchanged its 2008 estimate of growth in world oil demand.


Later Tuesday, New York’s main oil contract, light sweet crude for delivery in May, stood at 113.47 dollars a barrel, up 1.71 dollars from Monday’s finish.

London’s Brent North Sea crude for May struck its own record high of 112.08 dollars a barrel on Tuesday. The contract, which expires at the close, later stood at 111.58 dollars, up 1.74 dollars.

“The main reason for the rally is the dollar… but we also have some problems with supply,” said CMC Markets trader Nas Nijjar.

“The market is really reacting to the fundamentals” of supply and demand.

He added: “People are talking about (lower US consumption), but there is still strong demand coming out of India and China.”

AFP