Oil prices are back at record levels. The benchmark West Texas Intermediate contract hit $101.32 a barrel on Wednesday after staging a dramatic recovery from a low of $86.24 only two weeks ago. The rally has caught many investors by surprise, given a clear deterioration in the global economic outlook.

Oil first reached $100 on January 2 but WTI was unable to hold that elevated level amid rising fears of the US economy sinking into recession.