Oil prices reach new record high, pass $143 a barrel

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Source: CCTV.com | 07-01-2008 08:49

Worries over a slowdown in the global economy continue to help propel prices of crude oil on world markets to new highs. US oil prices surged past 143 US dollars a barrel for the first time on Monday before falling back.

Oil traders work on the floor of the New York Mercantile  Exchange in June.(AFP/Getty Images/File/Spencer Platt)

After hitting a record 143.67 US dollars, light, sweet crude for August delivery rose 10 cents to 140.31 US dollars a barrel on the New York Mercantile Exchange on Monday. Meanwhile, the pump prices in the US hit another record high at 4.086 US dollars a gallon.

Analysts attribute high oil prices to supply concerns and a fragile global economy, as well as continued tensions in the Middle East.

Joe Marshall, trader Mcnamara Options, said, "We saw the Saudis increase by 200,000 barrels a day and the market went straight up. To increase by 1.5 million barrels a day you would think that prices would soften up a little bit, and they may. I would say wait until that actually happens before you'll see the market react to it."

On Monday the Iraqi government announced it had opened six oil fields to international bidding as the country tries to boost daily production by 60 percent.

However, analysts say it will take some time to see if the news brings down the price of crude.

On New York's Mercantile Exchange, prices for heating oil and petrol futures, and natural gas futures also rose on Monday.