Crude oil prices have spiked past US$92 a barrel at one point, on growing concerns of the conflict between Lebanon and Israel, as well as new US sanctions on Iran. Light, sweet crude for December delivery rose to US$91.93 a barrel in electronic trade on the New York Mercantile Exchange by midafternoon in Singapore, after briefly rising to a new trading record of US$92.22. The Nymex crude contract settled at US$90.46 a barrel on Thursday in the US, closing above US$90 a barrel for the first time.
Lebanese troops fired on Israeli warplanes on Thursday, and while a conflict between Israel and Lebanon would not directly affect oil supplies, the hostilities in the Middle East would draw in oil producers such as Saudi Arabia and Iran. USA has announced fresh sanctions against Iran, targeting the elite Revolutionary Guards, which Washington accuses of supporting terrorism by backing Shiite militants in Iraq. OPEC has also announced that it is not in discussions to boost production by 500,000 barrels.