Oil smashes 135 dollars in Asian trade

SINGAPORE, May 22, 2008 (AFP) – Oil smashed past 135 dollars a barrel for the first time Thursday, continuing its astonishing rise following unexpected drops in US crude and gasoline stocks in a tight market, dealers said. In Asian morning trade, New York’s main oil futures contract, light sweet crude for July delivery, rose to a high point of 135.04 dollars a barrel before easing to 134.87 dollars.

The benchmark futures contract had closed a whopping 4.10 dollars higher at a record 133.17 dollars on the New York Mercantile Exchange, and continued its upward spiral in after hours electronic trade.

London’s Brent crude contract for July was also busting records, rising 1.75 dollars to 134.45 dollars, smashing its intraday high of 133.34 dollars set a day earlier. .