Oil Prices Hit Record Above $144 Over U.S. Stockpile Drop

Crude oil rose to a record above $144 a barrel in New York after U.S. stockpiles dropped unexpectedly and Russian President Dmitry Medvedev said prices will climb to $150.

Medvedev, whose country is the world's second-largest oil producer, said in Moscow that the high price may slow global economic growth. U.S. oil stockpiles dropped to the lowest since January, according to the Energy Department. A forecast increase in interest rates by the European Central Bank may spur commodity purchases, especially as the Dow Jones Industrial Average fell into a bear market.

Crude oil for August delivery climbed as much as 87 cents, or 0.6 percent, to $144.44 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since trading began in 1983. It was at $144.25 at 10:43 a.m. in Singapore. Futures have more than doubled in the past year.

Surging oil prices are starting to slow growth in some emerging economies. The Philippine central bank may say tomorrow that inflation jumped to an annual pace of 10 percent in June because of higher food and fuel. Indonesia plans to raise interest rates after costs gained 11 percent last month.

U.S. oil supplies dropped 1.98 million barrels to 299.8 million last week, the Energy Department said yesterday.

Analysts assumed a gain of 500,000 barrels. The European Central bank may boost interest rates today, further weakening the dollar and causing investors to buy oil contracts as a hedge against inflation.