Oil prices strike new high on supply fears

OIL prices struck a new high last night on simmering concern that rapid fuel demand growth will outpace global supplies at a time when traders fear a sabotage attack on the Middle East oil infrastructure.

US light crude reached $41.85 a barrel, the highest price since the New York Mercantile Exchange launched the crude contract in 1983. Later it eased to $41.28, down 10 cents on the day. London’s Brent crude eased 12 cents to $37.74 a barrel.

“The short-term is dominated by low gasoline stocks in the United States and Europe and deterioration of the Middle East situation. Neither is likely to change much in the months to come,” said Societe Generale economist Frederic Lasserre.