Oil leaps to new record above $129

Oil rose to a new record near $130 a barrel, driven by yet more bullish price forecasts from investment banks and influential US oil investor T. Boone Pickens. The market was also spurred by tight supplies of refined products, especially...

Oil rose to a new record near $130 a barrel, driven by yet more bullish price forecasts from investment banks and influential US oil investor T. Boone Pickens.

The market was also spurred by tight supplies of refined products, especially diesel ahead of the US driving season and amid strong Chinese demand, besides a weak dollar.

US light crude’s June contract, which expires, rose to an all-time high of $129.58 a barrel and by 1441 GMT trading was $2.20 higher at $129.25.

London Brent crude was up $2.49 at $127.55.

ICE gas oil futures rallied more than 2.5 per cent to a record of $1,238.75 a tonne.

“The middle distillates market remains a very strong performer on a global scale, that market is very tight and is performing well,” said Eric Wittenauer at Wachovia.

The market drew fresh impetus after Pickens said he expected oil prices to reach $150 a barrel this year.

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