U.S. Crude Hits New Record

SINGAPORE May 16, 2004; Reuters rported that U.S. light crude futures struck a new all-time record in electronic trading on Monday on worries that global supplies will strain to meet soaring demand.

The market tipped an intraday peak at $41.59 a barrel in electronic ACCESS dealings, surpassing Friday's peak at $41.56 during floor trading in New York.

Prices have pushed to their highest levels since U.S. crude futures were launched in 1983 by fears that world supplies may be hard pressed to meet surging oil demand, which has been driven by healthy global economic growth, especially in the United States and China.

Oil markets are also concerned of possible sabotage attacks on vital oil infrastructure in the Middle East, home to two-thirds of global reserves, which would further test supplies.