Oil price hits all-time high of almost $146 a barrel

July 11th, 2008 - 9:36 pm ICT by IANS  

Frankfurt, July 11 (DPA) Oil prices surged to a record high Friday amid supply worries and an outbreak of international tensions surrounding Iran, a key oil producer. With the US dollar also coming under fresh pressure, oil prices climbed to an all-time high of $145.98 a barrel in European trading as shares in Europe also began to edge down.

The oil price’s renewed climb came against the backdrop of concerns about crude oil supplies and on-going tensions over Iran with a fresh round of friction emerging between Tehran and Israel.

Concerns have been growing about the threat posed to global supplies by a new round of attacks on pipelines by Nigerian militants and a possible strike by Brazilian oil workers.

Moreover, the surging cost of energy is also adding to global economic uncertainty as fears grow about rising inflation just as the world economy is souring and growth is slowing.

By early afternoon trading, the dollar had slipped against the euro to $1.5802, as a result undercutting the delivers price for oil.

But after see-sawing their way through the week, European shares were heading for a downbeat end to the week. By early afternoon, Europe’s blue-chip Stoxx 50 index had lost 1.83 percent to trade at 2783 points.

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