Oil hits record high near 142 dollars

Oil prices rose to record high levels close to 142 dollars a barrel yesterday, a day after OPEC's president said they could reach 170 dollars this year owing to a weak dollar and geopolitical unrest. Brent North Sea crude reached a historic 141.98 dollars and New York light sweet crude struck 141.71 dollars a barrel in electronic deals.

Crude futures crossed 140 dollars for the first time on Thursday following the price prediction made by the president of OPEC, Algerian Energy Minister Chakib Khelil, in an interview with the television news channel France 24.

Crude futures had crossed 140 dollars for the first time on Thursday in the wake of Khelil's comments.

After achieving new peaks on Friday, Brent North Sea crude for August delivery stood at 141.48 dollars a barrel, up 1.64 dollars from Thursday's close.

New York's main oil futures contract, light sweet crude for August, was at 141.37 dollars, up 1.33 dollars. The cost of oil has doubled in a year, with consumers blaming the surge on insufficient output from the Organisation of Petroleum Exporting Countries.

However OPEC, which produces 40 percent of the world's oil, says speculators are responsible for pushing up crude in reaction to a falling dollar and tensions in oil-producing countries, such as Iran, Iraq and Nigeria.

A weak US currency makes oil priced in dollars cheaper for foreign buyers, thus pushing up demand for the commodity. AFP