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World oil prices strike new records amid escalating Mideast crisis
AFP
LONDON
Petroleumworld.com 07 13 06World oil prices struck fresh historic records beyond 75 dollars per barrel on Thursday after Israel bombarded Lebanon in a worrying escalation of the Middle East conflict, dealers said.
New York's main contract, light sweet crude for delivery in August, hit a record 75.89 dollars per barrel in electronic deals before the official daily opening of the US market.
That beat the previous peak of 75.78 dollars set last Friday amid simmering geopolitical tensions over Iran and North Korea.
Brent North Sea crude for August delivery struck a record 75.45 dollars per barrel in electronic dealing, beating its previous high of 75.09 dollars which was also set on July 7.
"Israel has been (pushed) into the background because of Iran and Iraq but the Israeli-Palestinian problem is the grand-daddy of oil problems," said Tony Nunan, manager for energy risk management at Mitsubishi Corp's international petroleum business in Tokyo.
"The situation is escalating again after several years -- they've now entered Lebanon."
The Israeli strikes, which followed the snatching by Hezbollah gunmen of two Israeli soldiers, compounded tensions arising from Iran's defiance of Western pressure to rein in its nuclear ambitions, dealers said.
Meanwhile, world powers meeting in Paris on Wednesday had upped the stakes over Iran, agreeing to send Tehran back to the UN Security Council and raising the threat of sanctions over its refusal to suspend uranium enrichment.
Brent North Sea, which is a light sweet crude, is the price reference for two-thirds of the world's traded oil, according to the IntercontinentalExchange which operates the trading of Brent.
Adjusted for inflation, current oil prices remain below levels reached after the 1979 Iranian revolution.
AFP 13 0750 GMT 07 06
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