The price of Brent crude oil struck an historic peak of $86.28 a barrel today on renewed concerns over tight global energy supplies.
New York crude also surged as Turkey vowed to 'purge' Kurdish rebels in the northern region of oil-rich Iraq, and following news that US energy stockpiles fell sharply last week.
After striking a record high, Brent North Sea crude for December delivery stood at $85.83 a barrel, up $1.46 from yesterday's close.
New York's main futures contract, light sweet crude for delivery in December, soared by $1.48 to $88.58 today after an intra-day peak of $88.99.
The US November contract had struck a historic high of $90.07 last Friday owing to tensions in the Middle East.
After sliding since Monday, oil prices began rebounding strongly yesterday after the US government said that stockpiles of crude had plunged by 5.3 million barrels in the week ending October 19. The market had expected a gain of 960,000 barrels.
Inventories of US distillates, which include diesel and heating fuel, sank by 1.8 million barrels last week. The data from the Department of Energy confounded market expectations for a rise of 275,000 barrels.
Heating fuel stocks are a key market focus because demand usually surges during the northern hemisphere winter. Compared with a year ago, distillates stocks are 7.6% lower and crude reserves are down 5.9%.
