Oil prices hit record $46.58
Prices bolstered by concerns over Iraq, Russia production
LONDON, England -- New York crude oil futures jumped a dollar to a set new record of $46.58 a barrel at the close on Friday on the heels of an explosion and fire at BPs Whiting, Indiana, refinery and worries about supply disruptions in Iraq and Venezuela.
In minutes, September crude set successive record highs before peaking at $46.65 per barrel.
That was the loftiest level for crude since the exchange launched oil futures 21 years ago.
Crude oil has set a record high for 10 of the past 11 trading sessions.
Prices traded near high record levels as a rebellion in Iraq's southern oil region adds to concerns over possible disruption of supplies.
Also weighing on the market is the chance of disruptions in Venezuela, where President Hugo Chavez faces a referendum on his rule, and the continuing problems for Russian oil giant Yukos.
In London Friday, Brent crude reached a new peak of $42.54 a barrel.
Along with the Iraq, Venezuela and Yukos factors, U.S. oil production in the Gulf of Mexico has been cut back this week because of a tropical storm.
Prices eased briefly Wednesday after Saudi Arabia's oil minister, Ali al-Nuaimi, said his country could raise production immediately by 1.3 million barrels a day (bpd). (Full story)
But prices began rising again as investors questioned whether the kingdom could deliver on that promise.
Prices were also supported by a Shiite uprising in Iraq, which Iraqi officials have blamed for halving the country's vital oil exports.
On Thursday, militiamen loyal to rebel Shi'ite cleric Moqtada al-Sadr threatened to blow up oil pipelines as the U.S. military launched a major offensive to crush the resistance, Reuters reported. (Full story)
