Friday June 27, 09:24 AM
Oil Price Surges To A New All-Time High
By Sky News
Oil prices have surged above the $140 a barrel mark again today after a threat by Libya to cut back on production. Brent Crude rose to a record high of £141.98 a barrel before slipping back slightly. The increase came after oil
hit $140 a barrel for the first time on Thursday.Libya's threat was in response to proposed new laws in the US aimed at bringing down the cost of oil. A Bill before the US Senate would enable the Justice Department to sue Opec members who were deemed to be limiting supplies. President Bush has vowed to veto the legislation if it is passed by Congress. Libyan National Oil Company chief Hokri Ghanem said: "We are studying all the options. "There are threats from the Congress... they are extending the jurisdiction of the Us outside the US." In a separate move, US lawmakers have called for action to curb excessive speculation in energy futures markets. Buying and selling by commodities traders is believed to be one of the main causes of the surge in oil prices in recent months. The latest developments come after the president of Opec warned oil could hit $170 a barrel this summer. Chakib Khelil predicted crude would rise to between $150 and $170 over the next few months. Mr Khelil told French TV he hoped prices would ease back later in the year. He also dismissed fears of crude surging above $200 a barrel. But he said it could happen if there was was a major crisis such as Iran halting production. His grim forecast came amid growing calls for Opec members to increase supplies to help reduce global energy, food and fuel costs. The AA revealed on Wednesday that average diesel prices had hit £6 a gallon for the first time at an average 132.03p per litre - 35% dearer than a year ago. Average unleaded petrol prices also hit a record of 118.65p per litre, or £5.39 a gallon, the AA said.
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