SINGAPORE: International concern mounted as world oil prices edged closer to USD 120 a barrel on Wednesday and the world's top producer called for calm.
Analysts said a weakening US dollar, supply worries in Nigeria and the OPEC cartel's reluctance to increase output have all contributed to the price surge.
New York's main oil futures contract, light sweet crude for delivery in June, rose four cents to USD 118.11 per barrel.
The May contract expired yesterday after closing at a record USD 119.37 per barrel at the New York Mercantile Exchange, where it earlier hit an all-time intraday peak of USD 119.90.
Global supply jitters have seen oil contracts traded in New York spike by more than USD 57 in the past year. Price records in New York and London have been broken almost daily over the past week.
Brent North Sea crude for June delivery rose five cents to USD 116.00 a barrel, after settling at an all-time high of USD 115.95 yesterday in London.
The contract earlier touched a record USD 116.75 in intraday activity.
"Market sentiment is bullish in the immediate term," said Victor Shum, senior principal of Purvin and Gertz energy consultancy in Singapore.
"The weak US dollar, real supply disruption in Nigeria... are pushing prices higher".
But Shum said there is increasing concern that the rally in oil pricing "has been too much and too fast".
Ministers from 74 nations attending the International
Energy Forum in Rome yesterday said oil prices should be at levels acceptable to producers and consumers, "to ensure global economic growth, particularly in developing countries."
