Oil prices close to record highs

OIL prices were close to their recent record highs yesterday as strong demand and renewed fears of further terror attacks in the United States unsettled traders.

A barrel of crude cost around 40.06 US dollars in New York after remarks on Thursday night by Homeland Security Secretary Tom Ridge that al-Qaida could try to disrupt the forthcoming elections.

Data yesterday showing strong demand for oil in the US which is currently in the summer driving season has been another major factor in the price surge.