Oil prices spike to historic highs beyond 135 dollars

Oil prices rose above $135 a barrel for the first time Thursday, with supply worries, global demand and an ever weakening U.S dollar driving crude futures up.

The world’s top energy watchdog is preparing a sharp downward revision of its oil-supply forecast, according to a report in The Wall Street Journal reported.


Light, sweet crude for July delivery rose as high as $135.09 before falling back slightly. By midday in Europe, the contract stood at $134.37 a barrel in electronic trade on the New York Mercantile Exchange, up $1.20 on Wednesday’s close of $133.17.

That settlement price, up $4.19 on Tuesday’s close, marked NYMEX crude’s largest one-day price advance since March 26.

Meanwhile, July Brent crude on the ICE Futures exchange in London also reached a new record of $135.13 a barrel Thursday. By midday in Europe, it had retreated to $134.35, a gain of $1.65 on its Wednesday close.

“Simply put, this is a market you cannot afford to be short in,” said U.S. analyst and trader Stephen Schork about Brent futures in his Schork Report.

AP