Sky-high oil prices surged further yesterday as worries over tight heating fuel supplies in the US and Europe this winter countered a previous bout of profit-taking by big-money funds.
US light sweet crude was up $1.07 at $53.58 a barrel, less than $1 below Tuesday's record peak of $54.45, while London Brent gained 50 cents to $50.10 a barrel.
Dealers said a deficit in heating oil supplies in the US north-east, the world's largest heating oil market, and tight inventories in Europe and Asia were rekindling supply fears ahead of the northern hemisphere winter.
"There's some uncertainty about how this winter is going to shape up and further declines in heating oil stocks will certainly scare this market," said Mr Jim Ritterbusch of Ritterbusch and Associates.
The supply worries countered a big drop in crude prices on Tuesday, when funds sold down the record futures high on forecasts of slowing demand growth, in line with profit-taking in other commodities markets.
