US crude oil prices have hit $104 a barrel for the first time after OPEC ministers agreed to keep their oil output steady.
Prices were also lifted by a US Department of Energy report showing that crude stockpiles tumbled by 3.1 million barrels last week. The surprise weekly fall was the first for one and a half months.
Earlier, OPEC said record high prices have been driven by factors that are beyond their control. This evening, US crude leapt $4.78 to $104.30. In London, Brent North Sea crude soared $3.88 to $101.40.
The US had said that even a token supply increase from OPEC would help to tame prices and contain any impact on a fragile world economy.
But OPEC ministers have repeatedly said the oil market has been driven upwards by factors such as a weak dollar, speculation and political worries, and not by a lack of crude.
Meanwhile, the price of gold reached a new record high of $991.47 an ounce this evening, with dealers blaming a number of factors for pushing the value of the precious metal higher.
Gold is seen as a safe haven in times of economic uncertainty and is a hedge against inflation. There are widespread fears that the US economy is lurching into recession and record oil prices have raised inflationary pressures.
