MercoPress. South Atlantic News Agency

Terror scare hits oil market.

Crude oil prices closed at record high following warnings of possible terror attacks against financial institutions in United States and the Russian government's decision to further investigate oil giant Yukos alleged massive tax evasion.

Light sweet US crude reached this Monday 43,94 US dollars the barrel, the highest since the beginning of the New York Mercantile Exchange in 1983 and in London Brent crude closed at 39,97 US dollars the barrel.

Last Sunday the US government warned that Islamic fundamentalists were planning attacks against specific financial institutions in New York (NYSE) and in Washington (IMF, World Bank).

"Prices are consolidating, but we can still expect higher levels", warned analyst Rick Navy from BNP Paribas in New York.

Meanwhile in Russia the government in a fiscal (and political) dispute with Yukos has given the oil giant a month to pay back taxes amounting to 3,4 billion US dollars and many analysts anticipate the collapse of the company.

But in spite of the bad news Russia is currently extracting 9,3 million barrels of oil per day and during the first seven months of 2004 exports rose 21,3% reaching 104,5 million tons compared to the same period in 2003, according to the Russian Federal Energy Agency. Total production in the seven months was 263 million tons of oil and 369.728 million cubic meters of gas. In 2003 total oil production was 412 million tons and in 2002, 380 million tons, with the estimate for this year totaling 432 million tons.