Oil tops US$91 on continuing supply worries

Oil prices extended gains to a new all-time high of US$91.10 a barrel in early electronic trade today, bolstered by supply concerns during the northern Hemisphere winter and growing political tensions in Middle East.

Nymex crude for December delivery rose to a record high of US$91.10 a barrel.

US crude closed up US$3.36 to US$90.46 a barrel earlier today (NZT) after striking a record US$90.60.

London Brent crude also hit a new record high of US$88.01 a barrel in Saudi Arabia next month.

Oil prices have more than quadrupled since the start of 2002.

Prices have jumped roughly 45 per cent this year on supply concerns, unprecedented dollar weakness and a shift of investor money into energy and commodities from other asset classes.

Gains have been limited only by concerns a US housing slump could draw the economy into recession and limit demand.

- REUTERS