Supply of oil seems to be threatened by mounting violence in the Middle East, causing prices to spike above US$78 per barrel on Friday. Light sweet crude for August delivery rose by $1.40 to US$78.10 in midmorning Asian trading on the New York Mercantile Exchange, after closing at a new high of US$76.70 a barrel. The previous Nymex settlement record of $75.19 was set July 5. The previous intraday record of $75.78 was posted two days later.
Fighting between Israel and Lebanon has intensified, oil installations in Nigeria have been hit by explosions and the diplomatic standoff between the West and Iran over its nuclear program continues.
If this season witnesses a repeat of last years hurricane damage, it is quite possible that oil prices will cross US$80 and beyond. Analysts also predict oil to attain levels of US$80 if this slew of geopolitical events continues in a tight market.
14-Jul-06 
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