Oil hits a record $100.10 as supply worries mount

20 February 2008

Mumbai: Crude oil surged nearly 5 per cent to hit a record above $100 a barrel on expectations of supply shortfalls following OPEC's decision not to hike output despite the high prices.

US crude was up $4.51 at $100.01 a barrel after hitting $100.10 a barrel. London Brent crude settled up $3.65 at $98.56 a barrel.

News of the death of Nigerian rebel leader Henry Okah also raised sully fears, although a government spokesman later said he was alive and in custody.

Worries about the economic health of the United States pushed oil off its record peak, but signs that OPEC will hold or even cut output when it meets on March 5 sent prices back to triple digits.

"OPEC should maintain production or cut production," said Venezuelan oil minister Rafael Ramirez.

OPEC president Chakib Khelil also made similar comments yesterday.