Supply concerns cause oil prices to soar

Oil prices soared to new highs above $91(€63.4) a barrel today as fresh supply concerns sent tremors through markets.

Reported comments from the head of the Opec oil cartel that there were no plans to boost production levels by 500,000 a day sent light, sweet crude to a record $91.78 in Asian trading.

Clashes between Lebanese troops and Israeli warplanes added to the price pressure amid fears that neighbouring oil-rich countries such as Saudi Arabia and Iran could be drawn into hostilities.

The latest spike in prices comes after oil first reached record levels a month ago on supply concerns and tensions in the Middle East.

In London, Brent crude for December delivery was trading at $89.02 (€62) on the ICE Futures exchange.