World oil prices soar above 130 dollars

ABS-CBN News

Posted at Jun 06 2008 09:11 PM | Updated as of Jun 07 2008 05:11 AM

Agence France-Presse

LONDON - Oil prices surged past 130 dollars per barrel on Friday as the US dollar slid against the euro, which makes crude cheaper for foreign buyers and boosts demand, analysts said.

Oil traded about five dollars beneath record peaks above 135 dollars per barrel that were hit last month.

New York's main oil futures contract, light sweet crude for July delivery, surged 2.39 dollars to 130.18 dollars a barrel, after earlier stretching as high as 130.58.

Brent North Sea crude for July gained 2.13 dollars to 129.67 dollars.

In foreign exchange market action, the euro rose as high as 1.5618 dollars in early morning European deals.

The single currency later stood at 1.5594 dollars, which compared with 1.5590 in New York late on Thursday.

Crude futures had jumped by more than five dollars on Thursday in a solid rebound which reflected the dollar's decline and followed heavy losses earlier this week, analysts said.

The euro won solid support after the European Central Bank hinted Thursday that eurozone interest rates could rise next month to combat higher inflation.

On May 22, Brent oil struck an all-time high of 135.14 dollars and New York light sweet crude reached a record 135.09 dollars, as the market was driven by concern about flagging global energy supplies, traders said.