Concern about tightening supplies and the weak dollar sent oil prices soaring to record highs of 107 dollars per barrel on Monday, one week after OPEC countries resisted US pressure to raise output.
Oil hit record highs of 107 dollars on Monday, supported by fresh concerns about the weakness of the dollar and tightening supplies.
The New York contract for April delivery had hit a record 106.54 dollars per barrel on Friday but the market had slipped back earlier Monday.
The spike came as the White House said Monday that US Vice President Dick Cheney planned next week to urge key OPEC member Saudi Arabia to push the oil cartel to boost output in an effort to rein in sky-high prices.
"I'm sure that energy issues will come up," spokeswoman Dana Perino said in a preview of Cheney's trip to the Middle East next week. "Obviously we want to see an increase in production."
The Organisation of the Petroleum Exporting Countries (OPEC), which produces 40 percent of the world's crude, decided at a policy meeting last week to maintain its daily production target of 29.67 million barrels despite calls by US President George W. Bush for it to do more.
OPEC blamed the high cost of crude on speculative buying as investors sought a hedge against a weakening dollar and rising inflation.
The weak US currency, which fell to a new low of 1.5464 against the euro on Friday, encourages demand for dollar-priced commodities like oil because it makes them cheaper for buyers using other currencies.
Date created : 2008-03-10