LONDON, May 7: The price of oil struck a record high $122.81 on Wednesday amid concerns over tight supplies, traders said.New York crude reached the new high beating Tuesday’s record of $122.73 despite news that US energy stockpiles had risen by a bigger than expected amount last week.

In London, Brent crude also hit an all-time peak of $121.47, beating Tuesday’s record of $120.99.

Runaway oil prices have almost doubled in the past year and have jumped by more than $20 since the beginning of 2008.

After striking new highs, oil prices pulled back but remained above Tuesday’s closing levels.

New York’s main oil futures contract, light sweet crude for June delivery, stood at $121.88, up four cents on the day.

Brent North Sea crude for June delivery was at $120.71, up 38 cents.

Ongoing violence in Nigeria -- Africa’s largest crude producer -- had helped push oil prices to record peaks on Tuesday, traders said.

“Support stemmed from continued unrest in Nigeria where a string of attacks by rebels calling for a greater share of the country’s oil wealth have shut-in a sizeable element of its production,” said analysts at energy consultancy John Hall Associates.

“Concerns over further Turkish incursions into Iraq in pursuit of Kurdish separatists also underpinned price movements.”

David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney, said sentiment remained buoyant after Tuesday’s sharp gains.

“While issues on the supply side are being progressively resolved ... they highlight the risks (to) oil production going forward,” said Moore.

He added that “Iran may also add a little risk element” in the near term.

Oil players fear the ongoing tension could result in Iran using oil as a bargaining chip. Iran is the second-largest producer in the Organisation of the Petroleum Exporting Countries (Opec) cartel.—AFP

Opinion

Editorial

United stance
13 Nov, 2024

United stance

BEYOND rhetoric, unity is rare within the Muslim world. Yet it was reassuring to see Muslim states speak with one...
Unscheduled visit
13 Nov, 2024

Unscheduled visit

AN IMF mission is in Islamabad for unusual, early talks with the Pakistani authorities as the lender seems worried...
Bara’s businesswomen
13 Nov, 2024

Bara’s businesswomen

BARA tehsil, a region typically known for its security challenges and socioeconomic problems, can now boast the...
System failure
Updated 12 Nov, 2024

System failure

Relevant institutions often treat right to internet connectivity with the same disdain as they do civil and political rights.
Narrowing the gap
12 Nov, 2024

Narrowing the gap

PERHAPS a pat on the back is in order for the ECP. Together with Nadra, it has made visible efforts to reduce...
Back on their feet
12 Nov, 2024

Back on their feet

A STIRRING comeback in the series has ended Pakistan’s 22-year wait for victory against world champions Australia....