Oil prices have surged to a record high of $65-a-barrel after a US government report ignited concerns of strong demand and a spate of refinery problems.
The gains came against the backdrop of rising tensions in the energy-rich Middle East, after the United States closed its diplomatic missions in Saudi Arabia this week due to the threat of attacks by militants.
US light sweet crude futures soared $1.93 to $65.00 a barrel, the highest on record. London Brent jumped $2.08 to new peak of $64.06 a barrel.
The US government report issued today showed crude stockpiles in the world's biggest energy consumer rose last week by 2.8 million barrels, due to hefty imports and slower refining activity.
But the report from the Energy Information Administration also showed a 2.1 million barrel decline in petrol stockpiles due to strong demand and slower domestic production - bringing inventories 7.9 million barrels, or 3.7 per cent, below last year's level.
