World Oil Prices Flirt With $140 per Barrel

International oil prices are threatening to break yet another record high and further stifle world economies.

On Friday, the prices of NYMEX West Texas intermediate for July delivery set a record high of 138.54 U.S. dollars per barrel, up 10.75 dollars (8.4 percent) from the day before – the largest single-day rise in history. Trade of West Texas intermediate came to a halt at one point for the first time in NYMEX history, as the daily rise broke the limit of 10 dollars per barrel.

The price hike was the result of Morgan Stanley’s projection of oil prices reaching 150 dollars in a month and news of an Israeli attack on Iran if Tehran does not abandon its nuclear program.

The prices of Brent crude oil for July delivery jumped to 137.69 dollars per barrel, up 10.15 dollars (eight percent) from the day before in London.

Wall Street plummeted Friday due to the oil price surge and sharp rise in U.S. unemployment. The Dow plunged 394.64 points (3.13 percent) to 12,209.81, while the NASDAQ fell 75.38 points (2.96 percent) to 2,474.56.

The U.S. unemployment rate for May rose half a percentage point from April to 5.5 percent, the highest since October 2004.

kong@donga.com