Oil price hits new record above $135 a barrel

Crude oil price has rocketed to a fresh all-time high above $135 a barrel. An unexpected fall recorded in US crude inventories yesterday boosted the prices, which are underpinned by expected increase in demand from China, potential supply threats due to geo-political tensions and OPEC’s unwillingness to increase output despite high prices.

According to the release by US Energy Department’s Energy Information Administration, crude supplies fell by 5.4 million barrels to 320.4 million in the week ended May 16.

Light, sweet crude oil July contract in NYMEX has traded as high as $135.04 a barrel, against the previous closing price of $133.17.

In MCX, crude oil June has varied in the range Rs 5668 – 5808 after opening at Rs 5668, and last traded at Rs 5793, up 2.42 % at 11:15 IST.