Business | Oil & Gas
Global inflation rises as supply fears push oil prices to $120
Light, sweet crude for June delivery rose to a new trading record of $120.21 a barrel on the New York Mercantile Exchange yesterday before retreating slightly to trade up $3.52 at $119.84.
- Gulf News Report
- Published: 00:11 May 6, 2008
- Image Credit:
Dubai: Oil futures surged to a new record of over $120 a barrel on Monday as fresh supply threats emerged and the dollar weakened against the euro signalling a further surge in global inflation.
Light, sweet crude for June delivery rose to a new trading record of $120.21 a barrel on the New York Mercantile Exchange yesterday before retreating slightly to trade up $3.52 at $119.84.
The oil market was shocked by news out of Iraq, where Turkish forces once again crossed the border to raid insurgent targets, and Nigeria, where rebels attacked three oil wells and pipelines feeding an export terminal over the weekend.
Amid the supply worries, the dollar weakened, giving investors even more reason to buy crude.
Rising oil prices combined with a sharp rise in food prices are further fuelling significant inflation risks, G10 central bankers' spokesman Jean-Claude Trichet said yesterday.
Food prices have also gone up due to inflation.
Meanwhile, food riots took a deadly turn in the Somali capital Mogadishu yesterday where security forces killed at least five people as they cracked down on riots sparked by rising food prices and record inflation.
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