Oil hits record above $147

By | July 11, 2008

Oil prices jumped $5 to a record high above $147 a barrel on Friday amid growing worries about threats to supplies from Iran and Nigeria and a strike by Brazilian oil workers next week.

Analysts said oil’s rally could run further if problems with U.S. mortgage companies Fannie Mae and Freddie Mac feed into the commodities boom by reducing the chances of an interest rate hike by the Federal Reserve.

The troubles with the mortgage giants — which control $5 trillion in debt — helped pare crude’s gains after it hit new highs as dealers focused on U.S. economic turmoil that has already slowed oil consumption in the world’s top energy user. – reuters

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