Oil prices set another record

Updated 08.23 Mon Apr 21 2008

Keywords: fuel, opec, money, business, oil

Oil prices have reached a new high of more than $117 dollars a barrel as fears grow over supply.

Light, sweet crude for May delivery reached $117.05 in early trading on the New York Mercantile Exchange, continuing last week's record run.

"There is a common understanding that oil prices have nothing to do with supply and demand" - Abdullah el al-Badri

At the weekend, Opec officials said the oil cartel is unlikely to increase production and an attack on a pipeline in Nigeria also sent the prices higher.

Prices dropped to $116.50 later in the day but they are still around $5 higher than a week ago.

They are also up more than 20 per cent from the $96 per barrell price seen at the start of the year.

Opec secretary-general Abdullah el al-Badri said oil prices will probably rise further and said the group is ready to raise production if the price pressure is due to a shortage of supply.

However, he said: "There is a common understanding that oil prices have nothing to do with supply and demand."