Price of crude oil reaches new record high

May 9, 2008

The price of oil per barrel has risen to a new all time high. During trading in Asia and in London, England the price of NYMEX Crude oil futures, per barrel, was at US$124.34 (22:07 eastern time) setting a new record high. Brent Crude oil also hit a new record high of US$122.84, but soon retreated to $121.79.

Several factors, including a weaker U.S. dollar and worries on the world supply, have caused the price of oil to skyrocket in the past week.

Despite worries, OPEC states that supply is currently meeting the current demands and there is currently no shortage of oil.

"There is clearly no shortage of oil in the market. OECD commercial oil stocks remain above the five-year average, with days of forward cover at a comfortable level of more than 53 days. US crude inventories, meanwhile, rose by almost six million barrels last week, which is a further indication that oil supplies are plentiful," stated OPEC in a statement on its website.