New York, June 7
Oil prices have shot up more than $11 to a new record above $139 after Morgan Stanley predicted prices would hit $150 by July 4.
Oil's meteoric surge, which pushed prices more than 8 per cent higher in a single day, added to a huge increase on Thursday to cap oil's biggest two-day gain in the history of the New York Mercantile Exchange. The burst higher —which also came on rising Middle East tensions — also raised the prospect of accelerating inflation by adding to already strained transportation costs.
That gloomy outlook sent stocks tumbling, taking the Dow Jones industrials nearly 400 points.
Light, sweet crude for July delivery jumped as high as $139.12 on the Nymex, before easing slightly to settle at $138.54, up $10.75. Prices hit a previous record of $135.09 a barrel on May 22, and settled Thursday at $127.79.
Brent crude on the ICE futures exchange settled $10.15 higher at a record 4137.69 a barrel, after hitting an all-time high of $138.12
a barrel. — AP
