Geopolitical crises spark oil price surge

OIL surged to new record highs above $76 a barrel yesterday on renewed worries over supply from major exporter Nigeria.

Prices were fuelled further over growing concerns that the renewed conflict between Israel and Lebanon would add international tensions in the region.

Prices also rose as the Iran nuclear row appeared to be heading to the UN Security Council, while practical concerns such as declining oil stocks in the US, which fell more than expected hit prices over night.