Oil prices remain high

The price of oil remained in sight of its record high today after breaching $100 a barrel for the first time last night.

Light, sweet crude for February delivery stood at $99.32 a barrel in Asian trading on the New York Mercantile Exchange.

The price peaked at $100.09 yesterday after the US government said oil reserves fell by four million barrels last week – a bigger than expected drop that ensured oil exceeded Wednesday’s previous record of exactly $100.

The hike in oil prices comes amid fears over declining stocks, a weak dollar and recent geopolitical troubles, including in oil-producing Nigeria. Speculative buying has also been blamed for the record price.

Costs may ease back this year as the world’s economy slows, dampening demand. The Opec oil cartel, which decided against raising production levels in December, may consider lifting output in February amid stronger-than-expected winter demand.