The price of oil rocketed to a record high past $146 a barrel on Thursday owing to falling reserves of United States crude, simmering tensions over Iran and a weak dollar, traders said.
In reaction, Saudi Arabian Oil Minister Ali al-Nuaimi said his country, the world’s leading oil exporter, was “concerned” about soaring prices.
Brent North Sea oil for August delivery surged to a life-time peak of $146,34 a barrel in morning trade.
New York’s main oil contract, light sweet crude for August delivery, surged past $145 for the first time to reach an all-time pinnacle of $145,43 a barrel.
“There is actually a chance we could see $150 today [Thursday],” said the latest Schork Report on energy markets.
Brent oil later stood at $145,92, up $1,66 from Wednesday’s close. New York crude was up $1,54 at $145,11.
Oil prices, which have doubled in value over the past year, were partly driven by news that American crude stockpiles fell by two million barrels to stand at 299,8 million barrels in the week to June 27.
The latest record-breaking price surge also came after Iranian Oil Minister Gholam Hossein Nozari said that Iran would react fiercely to any military attack against the oil exporter. — AFP