By KUNA
London : Oil prices remained near to record highs Wednesday after closing above 100 US dollars-a-barrel for the first time in New York last night.
Speculation that OPEC will reduce output caused the main contract for light, sweet crude oil to finish at an all-time high of 100.01 US dollars-a-barrel, having peaked at 100.10 US dollars earlier in the session.
The 4.5 percent surge in oil prices yesterday rattled Asian financial markets, with Tokyo’s benchmark stock index falling more than three percent, traders said.
London’s Financial Times Index of the top 100 company shares opened more than one percent lower today.
The surge was also bad news for British motorists after motoring organizations here said a recent drop in oil prices had failed to translate into weaker prices at the petrol pump.
They said yesterday that unleaded petrol prices in the UK were back above 104 pence a litre, while the average cost of diesel was near the 110 pence a litre mark.
Analysts said OPEC oil-producing nations might cut production in response to the slowdown of the US economy.
Other factors lifting oil above the 100 US dollars-a-barrel mark were concerns about a falling dollar, the threat of new violence in Nigeria, and continuing tensions between the US and Venezuela.
Yesterdays spike took oil prices above 100 US dollars-a-barrel for the first time since January 3.
It remained close to the barrier today, falling 71 cents to 99.30 US dollars a barrel during Asian electronic trading in Singapore.
Prices are still within the range of inflation-adjusted highs set in early 1980, the analysts added.
Depending on how the adjustment is calculated, 38 US dollars-a-barrel then would be worth 96 to 103 US dollars-a-barrel or more today, they noted.
In London, Britains North Sea benchmark Brent crude for April delivery fell 75 cents to 97.81 dollars-a-barrel on the ICE Futures exchange.