Oil prices rose to a six-week high above $41 today as concerns over security of supplies were heightened by a surprise fall in fuel stocks.
US light crude climbed to $41.12 a barrel, the highest level since June 2nd, when prices struck a 21-year peak at $42.45.
The latest price surge was triggered by an unexpected fall in US crude and gasoline inventories, which revived concerns over supply disruptions as oil demand grew at the fastest pace in 24 years and producers pumped almost flat out.
"The worry is that there only has to be an attack on Iraq's southern pipelines or trouble somewhere likeVenezuela or Nigeria, and the world's spare capacity would be wiped out," said Mr David Thurtell at Commonwealth Bank of Australia.
Iraq's exports were disrupted throughout June as saboteurs targeted major pipelines, while strikes and protests in Nigeria and Norway curbed production.
Exports from Iraq's southern terminals have resumed normally, but this week two ships have refused to load at the Basra oil terminal because of security concerns.
Venezuela, a major supplier to the United States, may face unrest ahead of a referendum on the rule of President Hugo Chavez. An opposition-led strike in late 2002 brought national output to a virtual halt for two months.