MercoPress. South Atlantic News Agency

Jittery oil market hits a new record

Oil prices surged Monday to a new record above 62 US dollars the barrel following the death of Saudi Arabia King Fahd and amid concerns about refineries and a new confrontation with Iran over nuclear energy development.

US light crude in New York reached 62,30 pb and closed at 61,60. In London Brent crude closed at 60,39 US dollars per barrel.

King Fahd will be succeeded by Crown Prince Abdullah who was actually running the country since his brother suffered a stroke in 1995. But Prince Abdullah who has promised to keep world markets well supplied, as his deceased brother is an octogenarian and analysts are looking further into the future.

"For the first time people are thinking about life after Abdullah, since the succession is not that clear", said Rick Mueller from Energy Security Analysis.

But besides Saudi succession, markets are also aware of refinery problems in United States where Exxon and BP have closed down two plants, allegedly for maintenance. BP Texas refinery is the third largest in the US, which will have a direct effect on summer gasoline supply and winter heavy fuel production.

And in the Middle East tension and uncertainty jolted when Iran, OPEC second largest oil producer announced that it was restarting its nuclear processing program in defiance of European Union warnings.

If this is so United Nations will have to seriously consider imposing sanctions on Iran.