LONDON, May 23: Crude oil prices rallied beyond $133 on Friday, close to record highs reached this week on concerns that global output will not satisfy rising demand for energy, traders said.

Brent North Sea crude for July delivery jumped $2.93 to $133.44 a barrel.

New York’s main oil futures contract, light sweet crude for July delivery, rose $2.36 to $133.17 a barrel.

On Thursday, Brent struck an all-time high of $135.14 and New York crude reached a record $135.09, before both contracts plunged as investors banked profits.

“We suspect that Thursday’s dip (after the highs) will be viewed as a buying opportunity heading into the weekend,” said MF Global analyst Ed Meir.

Oil prices have risen more than fourfold in five years, underpinned by Chinese demand for crude.

They reached $100 for the first time in January, crossed $120 a barrel at the start of May, and $130 on Wednesday after government data showed US energy inventories surprisingly fell last week.

Oil prices are also being supported by unrest in oil-producing countries, Opec’s unwillingness to hike output, and a weak dollar which makes commodities priced in the US unit cheaper for foreign buyers.

“With the surge in oil prices starting to look increasingly like a speculative mania, further increases are likely in the short-term as more and more speculative capital is sucked into the vortex created by rising prices,” said Shane Oliver, chief economist of AMP Capital Investors in Sydney.

Oil at $150 a barrel “is now just a few weeks trading away,” he said.

With supply struggling to meet demand, oil at $300 per barrel “is not inconceivable on a five-year horizon,” Oliver added on Friday.

Algeria’s energy minister and Opec president, Chakib Khelil, said on Thursday that falling production in non-Opec countries such as Russia has contributed to the spectacular rise in global oil prices.—AFP