oil price surge continues

June 12, 2008 12:58pm
Article from: Agence France-Presse

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WORLD oil prices rose in Asian trade today after a US government report showed American crude reserves sank for the fourth week in a row.

New York's main oil futures contract, light sweet crude for July delivery, was 57 cents higher at $US136.95 a barrel.

The contract had jumped $US5.07 to close at $US136.38 per barrel on the New York Mercantile Exchange yesterday, after spiking as high as $US136.80.

New York's benchmark contract surged to an all-time high of $US139.12 last Friday, when it posted a record-breaking one-day gain of $US10.75.peBrent North Sea crude for July delivery rallied $US4.00 to settle at $US135.02 yesterday in London. The contract hit a historic peak of $US138.12 last week.

The latest price rises came after the US government's Energy Information Administration (EIA) announced in its weekly report that American crude stockpiles dived 4.6 million barrels in the week ending June 6.

That was far heavier than market expectations for a drop of 1.5 million barrels and marked the fourth straight weekly fall.

Oil prices have surged since breaking through the $US100 level at the start of the year, and some bullish analysts say prices could hit $US150 soon.

The record-high prices have stoked fears for the global economy and led to sometimes violent protests by truckers in Europe, and unrest in India as well.