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Oil surges to a new high

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Oil surges to a new high

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The price of oil has hit nearly 140 dollars a barrel -a record high despite promises by Saudi Arabia to boost output. The Saudis, who are the biggest exporter of oil, pledged to raise production by 200,000 barrels a day next month on top of the 300,000 barrels made in June.

But oil traders said the move falls short of what is needed. Although some analysts view the Saudi move as a possible indication that other OPEC members might follow suit, optimism quickly evaporated as the price of oil rebounded.

While oil producers are to consider the crisis at a weekend summit they have in turn called for the world’s governments to reduce domestic taxes on oil.