April 20, 2006	Thursday	Rabi-ul-Awwal 21, 1427

LONDON, April 19: World oil prices on Wednesday struck fresh historic peaks above $73 in London and close to $72 in New York. The latest surge came after the US government revealed a further drop in stockpiles of US gasoline, adding to existing tension about a possible conflict between the US and Iran, the world’s fourth biggest producer of oil.

In London, the price of Brent North Sea crude for June delivery climbed to a new high of $73.34 per barrel.

New York’s main contract, light sweet crude for delivery in May,rose to a record high $71.80.

At about 1600 GMT Brent stood at $72.84, a rise of 33 cents on Tuesday’s close. New York’s main contract was at $71.25, down 10 cents.

Adjusted for inflation, current oil prices remain below levels reached after the 1979 Iranian revolution. According to Barclays Capital, in November 1979, crude prices surged to a high of $87.23 per barrel in todays money.

News of falling US gasoline (petrol) inventories meanwhile, fuelled market jitters ahead of the peak-demand US summer driving season, and added to heightened concerns over Iran’s disputed nuclear ambitions.

The US Department of Energy revealed on Wednesday that US gasoline stockpiles sank by 5.4 million barrels last week — twice as much as analysts had expected.

Barclays Capital analyst Kevin Norrish said “Dwindling inventories have fuelled fears of a supply squeeze at the start of summer, just when US gasoline consumption peaks.”

He added: “Geopolitical concerns and particularly, the worsening of the dispute between Iran and Western countries over Iran’s nuclear programme remains a major driver behind soaring oil prices.”—AFP