Oil prices rose to an 11-month high above $76 a barrel yesterday as rising global oil demand and North Sea field maintenance exacerbated supply worries.
London Brent crude, currently seen as a better indicator of the global market, climbed to an intraday high of $76.34 a barrel, the highest level since August 2006.
The all-time record high for Brent is $78.65, reached on August 8, 2006.
"The oil price is at very high levels for good reasons and there’s every possibility we could see further strength in coming months," said David Dugdale, an analyst at MFC Global Investment Management.
"With Opec continuing to withhold oil from the market the general picture remains one of tightness, with kidnappings in Nigeria, the upcoming hurricane season and ongoing geopolitical concerns all adding to uncertainty over the summer."
The August delivery contract for Brent crude traded 38 cents higher at $76 a barrel. US crude fell 44 cents to $72.37 a barrel.
The International Energy Agency, adviser to 26 industrialized countries, said world oil demand would rise faster than expected to 2012 while supply lags.
(Reuters, Gulf News)