(AP)
Thursday, July 3, 2008

KUALA LUMPUR, Malaysia—Oil soared to a record above US$145 a barrel today in Asia, fueled by concerns over a larger-than-expected drop in U.S. stockpiles and the threat of conflict with Iran.
Early afternoon in Singapore, light, sweet crude for August delivery hit a new trading record as it jumped $1.49 to US$145.06 a barrel on the New York Mercantile Exchange.

Yesterday, oil set a new record closing price of $143.57 a barrel.
Traders say expectations that the European Central Bank will raise interest rates later today is expected to weaken the U.S. dollar and drive oil prices even higher.
Prices may also be lifted with increased buying before U.S. oil markets close tomorrow for the Fourth of July holiday.
The latest spike means a barrel of crude has gone up by more than half since the end of last year, when oil was going for US$96 a barrel.