Crude oil prices Wednesday rose to a record high above $78 a barrel after a large decline in US crude oil inventories signalled a tighter crude market in the second half of the year.

However, higher US petrol and heating oil inventories, fears of record prices lowering energy demand and speculative profit-taking later helped to damp the price. Nevertheless, analysts said oil prices could rise further in the short term on still robust oil demand and lagging oil supplies.