The New Nation - Internet Edition

BBC Online

Crude oil prices have hit yet another all-time high in New York, tipping beyond $126 a barrel.

Driven by surging demand and continuing supply fears, US light crude hit $126.20 in afternoon trade in New York, before falling to $124.78 a barrel.

Meanwhile, London's Brent crude also hit a fresh high of $125.68, before later falling below $125. A report by Goldman Sachs has said the price of crude oil could reach $200 a barrel in as little as six months.

Despite the continuing rises in oil prices, producers group Opec reiterated its view on Thursday that supplies were adequate for the time being.

However, it has also said that $200 a barrel was a possibility in the future. Soaring global demand for oil is being led by China's continuing economic boom and, to a lesser extent, by India's rapid economic expansion.

Both are now increasingly competing with the US, the European Union and Japan for the lion's share of global oil production. This additional demand comes at a time of continuing production problems in a number of oil-producing nations.

In the past week, production in Nigeria has been affected by attacks on pipelines by anti-government militants, while Iraqi exports have been hit by renewed cross-border raids by Turkish forces against Kurdish insurgents.