Concern mounts as oil price nears US$120

SINGAPORE - International concern mounted as world oil prices edged closer to US$120 a barrel 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 seven cents to US$118.14 per barrel.

The May contract expired on Tuesday after closing at a record US$119.37 per barrel at the New York Mercantile Exchange, where it earlier hit an all-time intraday peak of US$119.90.

Global supply jitters have seen oil contracts traded in New York spike by more than US$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 US$116.00 a barrel, after settling at an all-time high of US$115.95 on Tuesday in London.

The contract earlier touched a record US$116.75 in intraday activity.

Ministers from 74 countries attending the International Energy Forum in Rome on Tuesday said oil prices should be at levels acceptable to producers and consumers, while US President George W. Bush also expressed concern at the price levels.

Saudi Arabia’s petroleum minister, Ali al-Naimi, called for calm in the face of runaway oil prices on Tuesday. He said there was no imminent oil shortage. - AFP/ir

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