Oil hit a fresh record for the seventh session in a row today as companies shut Gulf of Mexico production on forecasts a tropical depression blowing through the region would become a storm.
US crude gained 11 cents to $82.04 a barrel this evening after hitting an all-time high of $82.55 earlier. London Brent fell 33 cents to $78.14 a barrel.
Oil has traded above $80 for the past week in part due to concerns about US. supplies after government data showed crude stocks in the top consumer fell for the fourth consecutive week.
A tropical depression blowing into the Gulf of Mexico exacerbated worries as companies shut offshore oil and natural gas output on expectations it would become a tropical storm.
Shares in airline's in Europe fell today on the record fuel prices. Ryanair closed down 1% and Aer Lingus lost 2.8% in Dublin, while in London BA fell back 3.7% and Lufthansa fell 1.5% in Frankfurt with Air France down 3.2% in Paris.
Oil has risen by a third this year, driven by worries of fuel shortages during the Northern Hemisphere winter, supply risks in producer countries, the weaker dollar and rising money flows from investors.
The recent surge to record prices came after producer group OPEC agreed to add 500,000 barrels per day (bpd) to global markets to help calm consumer nation concerns.
While analysts are divided over whether prices can sustain current levels, some OPEC officials said oil will not stay above $80 for long.
