Energy Security Warnings of a possible terrorist attack in Saudi Arabia and worries over Iran's resumption of its nuclear programme helped push crude prices to nominal records, with analysts saying the price could soon breach $65 a barrel.
US light sweet crude soared past Monday’s record high in early electronic trade on Tuesday hitting a new peak of $64.05 a barrel as an already-tight market reacted to warnings from the US, the UK and Australia of potential attacks in Saudi Arabia, the world's biggest oil producer.
Britain talked of "credible reports" that terrorists were in the "final stages of planning attacks" in the kingdom, a warning that was echoed by the Australian government and came as the US closed its missions in Saudi Arabia, also citing a terrorist threat.
The futures market has been driven higher by one of the worst sequences of refinery stoppages in years. Valero and ConocoPhillips both confirmed on Monday that they had had problems at refineries over the weekend.
Prices were also lifted by Iran's resumption of nuclear activities at a uranium conversion plant in Isfahan - a move that brings Tehran closer to threatened United Nations sanctions.
The International Atomic Energy Agency will hold an emergency meeting of its board of governors on Tuesday to discuss Iran's decision.Oil price: news & analysis
