The New Nation - Internet Edition

AFP, Singapore

World oil traded near fresh record levels in Asia on Friday as speculators piled into the market on the back of a sharp decline in the US dollar following a weak report on US economic growth, dealers said. In afternoon trade, New York's main contract, light sweet crude for delivery in April, was 21 cents higher at 102.80 dollars per barrel. The contract had surged 2.95 dollars to close at a record 102.59 dollars per barrel in New York on Thursday, eclipsing the prior record of 100.88 dollars reached on Tuesday.

The benchmark New York contract touched an all-time intraday peak of 102.74 dollars on Thursday, and after floor trading closed reached 102.97 dollars in electronic trade.

Brent North Sea crude for April was seven cents higher at 100.97 against its all-time high of 100.90 dollars a barrel reached on Thursday. The contract had struck an intraday record of 101.27 dollars earlier Thursday. The dollar's plunge to an all-time low against the euro made dollar- denominated crude oil cheaper for investors using stronger currencies. The euro on Thursday crossed 1.52 dollars for the first time. The spiking oil prices have stoked inflation in the United States, the world's biggest energy consumer, raising concerns about the Federal Reserve's interest-rate slashing campaign aimed at spurring sluggish growth. Ministers from the 13-nation Organisation of the Petroleum Exporting Countries (OPEC) convene in Vienna next Wednesday to decide on output quotas as the northern hemisphere winter, traditionally when demand peaks, draws to a close. A top official from OPEC member Nigeria said the cartel was unlikely to cut output if prices remain around record levels. Concern that OPEC could reduce output has been one of the factors driving prices above 100 dollars this week, analysts said. On Thursday OPEC's smallest producer Ecuador suspended its oil exports because a landslide cut off its main pipeline, state- run Petroecuador oil company said. Ecuador extracts 511,000 barrels of oil per day, of which 67 percent is exported. Many oil industry experts now expect the cartel will hold its official daily output at 29.67 million oil barrels.