Oil prices inched closer to a record today as supply threats in major producers Iran, Nigeria and Iraq triggered a fresh wave of fund buying. Continued strong demand growth in the US and China - the world's two largest energy consumers - also added to concerns that the oil industry may struggle to match voracious consumption.
US crude futures rose 24 cents to $68.98 a barrel, bringing prices within striking distance of the all-time high $70.85 hit last August after Hurricane Katrina leveled US oil platforms and refineries.
London Brent crude settled up 62 cents to $69.37 a barrel after hitting a new record high of $69.70 earlier today.
The price of US crude for delivery later this year has already vaulted over the psychological $70 a barrel mark, with dealers anticipating potential supply disruptions and an uptick in demand growth for the summer driving season.
Oil has climbed 13% since the start of the year, propelled by concerns over supplies from OPEC producers Iran, Nigeria and Iraq.
Iran is at odds with the West over its atomic programme, rebels have knocked out nearly a quarter of Nigeria's output and Iraq's exports are at their lowest since the US-led invasion.
The recent surge in oil prices adds to a rally that began at the start of 2002 with oil at $20 a barrel. Investment money has poured into commodities. Gold hit a 25-year high and silver set a 23-year peak today.
