Oil prices topped the $30 a barrel mark for the first time in 15 months today, entering the danger zone for Western consumer nations as concerns grew over possible military conflict between the United States and Iraq.
The move beyond $30 - clearing peaks struck in the immediate aftermath of last September's terror attacks on New York and Washington - extended a nine-day surge that has added 13 per cent to oil prices.
September crude futures on the New York Mercantile Exchange, rose to $30.32 a barrel, the highest price for prompt crude since February 2001, before closing at $29.95.
Oil prices have steadily strengthened on fears of potential supply disruption in the Middle East, home to two thirds of world oil reserves, as Washington mulls military action to oust Iraqi leader Saddam Hussein.
The OPEC has held its official production at the lowest level for a decade this year, helping to push crude prices up almost 50 per cent despite sluggish fuel demand in a downbeat economy. The United States, the world's largest oil consumer, has called on OPEC to raise flows by one million barrels a day (bpd) from October to avoid a price spike this winter.
Consumer governments, led by the White House, fear that prices above $30 for US crude could hit growth and endanger a fragile global recovery.