MercoPress. South Atlantic News Agency

Russian justice decision skyrockets oil prices.

Oil prices closed at record highs this Wednesday following the announcement by the Russian company Yukos that the Russian Justice Department ordered it to stop selling company's property.

In New York the oil barrel reached a record 43 US dollars and in London 39,60 US dollars the highest in 14 years. Russia is the world's second biggest oil exporter after Saudi Arabia and Yukos accounts for 20% of the country's oil output, approximately 1,7 million barrels per day of which 75% is exported.

According to Russian news agencies the Russian Justice Department told Yukos to stop selling company's property and assets, an effective ban on oil sales. The announcement had an immediate impact on markets coinciding with fears of further attacks on oil industry infrastructure in the Middle East and the fact OPEC is pumping oil at its highest level since 1979 that is 30 million barrels per day.

Yukos has been involved for months in a political and fiscal dispute with Russian authorities that are demanding 3,4 billion US dollars in unpaid taxes which Mr. Mijail Jodorkovski the company's main shareholder flatly denies from jail.

The fact is that if Yukos is forced to suspend production and shipments, oil prices are set to further skyrocket and strain international supplies which are very bad news for United States automobile owners and even President George Bush chances of reelection.

Venezuela's Oil Minister Rafael Martinez said OPEC had little capacity left to help bring prices down "since most country members are near their production limits". OPEC is committed to a production increase again in August.