Oil prices soar to new highs as traders get jitters over short supplies

OIL prices soared to new highs on both sides of the Atlantic yesterday as traders fretted over increasingly short supplies.

The cost of crude in New York broke through the record of $49.40 a barrel set last month to hit $49.74 by mid-afternoon, making a move through the milestone $50 mark look even more likely. Meanwhile, Brent crude oil found in the North Sea and traded on the International Petroleum Exchange in London rose to $46.25, taking it beyond last week's record of $45.75.

The latest surge came after hurricanes off the US coast disrupted supplies in the region.