Oil price climbs to record high

The price of oil rocketed to a record high point of $127,43 (about R954) a barrel on Friday, as US President George W Bush prepared to urge Saudi Arabia to pump more crude, analysts said.

The price of oil rocketed to a record high point of $127,43 (about R954) a barrel on Friday, as US President George W Bush prepared to urge Saudi Arabia to pump more crude, analysts said.

Bush arrived in Saudi Arabia from Israel on Friday for talks with the world's biggest crude exporter on record oil prices that have hit Western consumers hard.

Bush aides have said that, at more than $125 a barrel, oil prices were set to top the agenda of the US president's talks with King Abdullah and other Saudi officials.

"The global oil market remains structurally tight," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"Even though demand growth is showing some weakness, supply growth is also not there. Opec (Organisation of Petroleum Exporting Countries) continues to restrain supply and production in non-Opec states is not expected to be strong."

Saudi Arabia is the main player in Opec, which pumps 40percent of the world's oil. - Sapa-AFP

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