US oil prices struck new highs above $42 a barrel today amid worries that sabotage against oil infrastructure in Saudi Arabia could destabilise the world's biggest crude exporter.
The latest rally to 21-year peaks has raised doubts about whether an increase in supplies from the OPEC producers' cartel will be enough to tame prices when ministers meet on tomorrow.
US light crude hit $42.45 a barrel, the highest since futures were launched in New York in 1983.
At 7.30 a.m. Irish time US crude was 13 cents down at $42.20 a barrel, while London's benchmark Brent crude slipped 38 cents to $38.70 a barrel.
Oil surged more than six per cent yesterday after the suspected al-Qaeda attacks in the Saudi oil city of Khobar, which underlined concerns over the ability of the ruling Saudi royal family to contain a wave of violence by Islamic militants.
Khobar, where 22 people were killed in the weekend rampage, has no production, export or refining facilities but Western oil firms have offices and housing in the city.