Oil prices surged again yesterday, setting fresh 13-year highs, on worries about Middle East supply security and fears for summer petrol shortages in the United States.
US light crude was up 72 cents at $39.60 a barrel (€32.50) shortly before the market close.
US gasoline set a new all-time high of $1.319 a gallon. In London, Brent crude peaked up 97 cents at $36.90 a barrel, its highest since October 1990, shortly after Iraq's invasion of Kuwait.
"Violence in the Middle East specifically targeting oil assets has raised the bar with regards to the fear of supply disruption," said Mr Josh Sadler, energy analyst with Société Générale.
An attack on Saturday by Islamic militants on foreign workers at a petrochemical plant in the Saudi Red Sea city of Yanbu followed a failed suicide bombing mission 10 days ago at Iraq's Basra oil export terminal.
Supply security concerns have drawn investment funds to oil. The Goldman Sachs commodity index, heavily weighted towards energy, set an all-time high on Wednesday.
"Saudi Arabia's oil infrastructure has three major export arteries and looks as defensive as it could be to attack.
"However, the risks have clearly risen," said oil analysts at Deutsche Bank in a report.
Weekly petrol inventory data from the US at first sight appeared to provide some comfort for dealers worried about a summer supply crunch .
The US Energy Information Administration said petrol stocks rose four million barrels to 204 million barrels in the week to April 30th, above forecasts for a 1.5-million-barrel stock.
But dealers said they remained worried that inventories may not build sufficiently to meet peak summer demand.
"The question being asked is whether stockbuilds in May and June will be enough to meet demand in July and August, when everyone takes to the road for vacation, and the industry's answer at the moment is 'no'," said Refco broker Mr Nauman Barakat.
