Oil prices hover at new record highs around US$130 per barrel

21-May-08

As buying gains momentum on mounting supply concerns, oil prices have spiked to a new record high of around US$130. June contract for light, sweet crude settled two dollars higher than the previous day at US$129.10. Growing supply concerns have recently become the key market driver, replacing previous concerns of a weakening US dollar. Supply concerns have mounted on a statement by OPEC president that OPEC will not increase output to meet increased demand during the United States' summer driving season. Output will remain unchanged before its next meeting on September 9.