LONDON, May 20: The price of oil rocketed to a record high $129.58 on Tuesday as investors dived into a market driven higher by concerns about tight global energy supplies and strong demand, analysts said.

After striking the historic summit, New York’s main oil futures contract, light sweet crude for June delivery, pulled back slightly to stand at $129.24 a barrel, up $2.19 on Monday’s close.

London’s Brent crude contract for July hit an all-time peak of $127.90 on Tuesday. It later stood at $127.46, up $2.40.

The market was reacting to oil supply disruptions in France and Opec’s unwillingness to hike output, analysts said.

“Overall, (oil) market participants are currently choosing to focus on the supply side, with investors doubting that robust demand for distillate fuels from Asian, Middle Eastern and other emerging market economies would be met with enough supply,” said Sucden analyst Andrey Kryuchenkov.

Bank of Ireland analyst Paul Harris meanwhile said that Opec’s refusal to consider output levels before a meeting in September was “further weighing on supply concerns and adding to upward price impetus.”

—AFP