Crude prices rallied to a record high of above US$147 a barrel yesterday
amid concerns over tensions in the Middle East and unrest in Nigeria.
Light, sweet crude for August delivery rose more than 5 dollarsto 147.25 on
the New York Mercantile Exchange after Iran test-fired both medium- and
long-range missiles this week.
Iran's move has triggered investors' concerns over the stability in the
region, analysts say.
Israeli war planes has also reportedly practiced over Iraq, adding to
speculations that the country is planning to attack Iran.
OPEC Secretary General Abdullah al-Badri said Thursday that theoil producing
group will not be able to replace any shortfalls if Iran, OPEC's second-biggest
oil producer, is attacked.
Meanwhile, the Movement for the Emancipation of the Niger Delta,the main
militant group in Nigeria's oil-producing region, said itwas abandoning a
ceasefire to protest against a British offer to help tackle the unrest in the
region.
The record high prices follows a sharp rebound on Thursday after falling by
nearly 10 dollars earlier this week. Light, sweetcrude for August delivery rose
5.60 dollars on Thursday to 141.65 a barrel on the New York Mercantile Exchange.
