Oil price hits record near $142

BBC
Friday, June 27, 2008

The price of crude oil has surged to a record, almost breaking through $142 a barrel, amid concerns about the ability of producer nations to meet demand.

In London, Brent crude jumped to $141.98 a barrel, while New York light crude climbed as high as $141.71.

Producers' group Opec has been under pressure to boost production, though recent reports have shown its members are split over whether to lift output.

Libya has threatened to cut production because the market is well supplied.

Legal action

Libya's most senior oil official, Shokri Ghanem, said on Thursday he was looking into the possibility of cutting oil production in response to US threats against oil producers.

The US House of Representatives has passed a bill that would allow the Justice Department to sue members of Opec for limiting supplies of oil and setting prices.

But the bill has not yet been voted on by the Senate and the White House has already said it would veto the bill.
FULL ARTICLE @ BBC