NEW YORK, March 13, 2008 (AFP) – Oil prices hit a record 111.00 dollars per barrel Thursday amid an accelerating price rally which traders say has been fueled by a sharp fall in the value of the US dollar and supply concerns. .
Saudi Foreign Minister Prince Saud al-Faisal said speculators were largely responsible for the price peaks as some analysts cautioned that the market could be in a price bubble.
New York’s main oil futures contract, light sweet crude for delivery in April, closed at an all-time high of 110.33 dollars per barrel, marking a gain of 41 cents from Wednesday’s closing level.
In earlier frenzied trading, however, the contract had struck a record 111.00 dollars.
In London, Brent North Sea crude for April delivery settled up 1.27 dollars at 107.54 dollars after striking an all-time intraday high of 107.88 dollars.
Prince Faisal played down some analysts suggestions that supply worries had boosted prices.
“The current turbulence on the oil market is due in large part to speculation and has nothing to do with market fundamentals, which are stable,” the prince told the Organization of the Islamic Conference summit in Dakar.
Saudi Arabia is a key member of the Organization of th