Oil prices soar to record high

Oil prices hit a record high yesterday because of fears of a sharp slowdown in output from Russia and Iraq.

The cost of crude surged to $43.17 a barrel in New York as investors fretted over a stand-off between Russian authorities and its largest oil company Yukos.

This dispute could shave 2% off the global oil supply if Russia’s Justice Ministry carries out a threat to freeze production at Yukos.