Oil hits record $100 a barrel

A combination of African violence, tight energy stockpiles and a weaker US dollar have contributed to a surge in the price of oil as speculative buying sent fears of inflation through Wall Street placing a further shadow over the economic outlook in the United States. US Crude traded at $100 a barrel before closing the session at $99.62, dangerously close to breaching the all time high (inflation-adjusted) of $101.70 achieved in April 1980 immediately after the Iranian revolution. Analysts concede that oil may rise further as demand threatens to outstrip supply and concerns build over stockpile levels. The price of crude oil jumped 57 per cent in 2007 and has tripled since 2000 as demand from China and other developing countries continues to increase.

By Reuters