May 08, 2008	Thursday	Jamadi-ul-Awwal 2, 1429

LONDON, May 7: The price of oil struck a record high $122.81 on Wednesday amid concerns over tight supplies, traders said.New York crude reached the new high beating Tuesday’s record of $122.73 despite news that US energy stockpiles had risen by a bigger than expected amount last week.

In London, Brent crude also hit an all-time peak of $121.47, beating Tuesday’s record of $120.99.

Runaway oil prices have almost doubled in the past year and have jumped by more than $20 since the beginning of 2008.

After striking new highs, oil prices pulled back but remained above Tuesday’s closing levels.

New York’s main oil futures contract, light sweet crude for June delivery, stood at $121.88, up four cents on the day.

Brent North Sea crude for June delivery was at $120.71, up 38 cents.

Ongoing violence in Nigeria -- Africa’s largest crude producer -- had helped push oil prices to record peaks on Tuesday, traders said.

“Support stemmed from continued unrest in Nigeria where a string of attacks by rebels calling for a greater share of the country’s oil wealth have shut-in a sizeable element of its production,” said analysts at energy consultancy John Hall Associates.

“Concerns over further Turkish incursions into Iraq in pursuit of Kurdish separatists also underpinned price movements.”

David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney, said sentiment remained buoyant after Tuesday’s sharp gains.

“While issues on the supply side are being progressively resolved ... they highlight the risks (to) oil production going forward,” said Moore.

He added that “Iran may also add a little risk element” in the near term.

Oil players fear the ongoing tension could result in Iran using oil as a bargaining chip. Iran is the second-largest producer in the Organisation of the Petroleum Exporting Countries (Opec) cartel.—AFP