Oil prices hit record high

Oil prices have now hit the US$100 a barrel mark for the first time. The violence in Nigeria, Algeria and Pakistan are said to be some of the contributing factors. The other factors include a further weakening of the US dollar and the threat of a cold weather.



Light sweet crude rose by 4 dollars and 2 cents to 100 dollar a barrel in New York, prompting a drop in shares and a surge in gold prices.



There are concerns that the high price of oil will add to inflation at a time when many central banks are trying to cut interest rates to stimulate growth.