New York, May 20: World oil prices took off, nearing record highs amid bloodshed in the Middle East and US President George W. Bush's refusal to release emergency oil reserves. After dipping for a day, speculators returned to snap up oil and crush emerging sentiment that the market may have peaked. New York's benchmark light sweet crude for June delivery soared 96 cents to 41.50 dollars a barrel, five cents shy of the record close set Monday for the 21-year-old futures contract. The light sweet crude July contract broke new ground, leaping 1.20 dollars to close at 41.62 dollars a barrel.
Brent North Sea crude oil for delivery July gushed 95 cents higher to 37.90 dollars.



Gasoline roared 6.34 cents higher to a record close of 1.4503 dollars for a gallon of regular unleaded to be delivered in June.



"This is a real, live, honest-to-god bull market," said Ag Edwards director Futures research Bill O'Grady.



"Every time this market breaks down you get what I suspect is hedge fund and commodity fund money that just comes into it and buys it," he said.



"If this market is going to go down it is going to happen because of a change in psychology."



Investors were spooked by the surge in oil prices. After gaining more than 100 points in early trade, the Dow Jones industrial average finished with a loss of 30.80 points or 0.31 per cent at 9,937.71, unable to hold above the key psychological level of 10,000.


Bureau Report