Crude oil prices add to economic woe

Crude oil prices today continued their record-breaking run after topping the 118 US-dollar mark.

Light, sweet crude for May delivery touched 118.05 dollars a barrel in electronic trading on the New York Mercantile Exchange, before settling back around 50 cents lower.

The commodity has been notching up new records on virtually a daily basis over the past two weeks amid enduring concerns over global oil supplies, particularly from the Opec countries.

The price is now up more than 22% from the 96 US-dollars-a-barrel level seen at the start of this year.

Fears over attacks on oil installations and pipelines in Nigeria – a major supplier to the gasoline-hungry US – have helped fuel the recent spikes. And the looming US driving season, when million of motorists take to the roads, has also seen demand rise.

Singapore-based energy analyst Victor Shum said: “It is light, sweet crude, which is much desired by the US market during the summer gasoline season, so that certainly has affected the market.”

Closer to home, a looming strike by workers at Ineos’ 196,000 barrel-a-day Grangemouth refinery and petrochemical plant is also thought to have had an impact on prices.

In London, Brent crude futures were 28 cents up 114.71 dollars a barrel.

The weak US dollar has continued to support oil prices despite strengthening this week against the yen and euro.

Commodities such as oil and gold are still attractive to investors seeking hedges against further drops in the currency.

Oil’s record run has caused misery at the petrol pump for millions of motorists.