Oil Prices Climb to New Highs

LONDON – Oil surged to a record high above $72 on Tuesday on concern that
Iran’s nuclear stand-off with the West could cut oil exports from the world’s fourth-largest crude exporter.

In London, North Sea Brent crude oil jumped 74 cents to an all-time high of $72.20 a barrel as Iran and the West exchanged increasingly sharp words over the Islamic Republic’s determination to push ahead with a nuclear program.

U.S. West Texas Intermediate crude oil hit a record $70.88, smashing through its end-August high of $70.85.

“The Iranian situation is making us all very nervous… We don’t seem to be getting anywhere on the diplomatic solutions,” said Deborah White, an analyst at SGCIB in Paris.

With almost a quarter of Nigerian oil production still shut after rebel attacks two months ago, oil consumers feel almost as vulnerable as they did during the Arab oil embargo in the 1970s.

Oil prices have soared from $20 at the start of 2002 and are now nearing the inflation-adjusted peaks of over $80 hit in 1980, the year after the Iranian revolution.

Reuters