Oil Reaches Record $57.50 on Concern Demand Will Outpace Supply

Crude oil rose to a record, reaching $57.50 a barrel in New York, on concern that the Organization of Petroleum Exporting Countries can’t pump enough to meet demand.

A 50 percent surge in prices in the past year may hurt the world economy and cap growth in oil use, said Richard Savage, global head of commodities research and strategy at Bank of America in London.

“It’s an admission that they don’t have any spare capacity left,” said Simon Wardell, an analyst at Global Insight Inc. in London. “If they don’t let stockpiles rise, they won’t be able to cope with demand this year.”