Western Unemployment Affects Global Oil Prices: IEA

World oil prices swelled yesterday to their highest 13-years- level, boosted by concerns about the continuing violence in the Middle East, affecting world supplies.

Analysts said worries about low US stocks had also contributed to the sharp price hike. London?s Brent crude forged ahead $1.52 a barrel or 4.4 per cent to $36.00 its highest level since 1991, following the weekend killings of five Western workers at a Saudi Arabian chemicals plant in Yanbu.

Prices were given extra stimulus by news of a fire at Total and Dow?s jointly-owned Dutch Vlissingen refinery which broke out early yesterday.

US light crude rose 94 cents to $39.15 a barrel after climbing more than 80 cents on Monday when London markets were closed for the Bank holiday.

Attacks on Saudi Arabia and other major producers have intensified concern over supply security from the Middle East, which accounts for roughly a third of global oil production.

The Yanbu attack has heightened fears that terrorists may target oil infrastructure in Saudi Arabia, the world?s top crude exporter, where energy facilities are tightly protected.

Oil broker Refco said: "The rampage occurred away from the major oil installations but (was) nonetheless alarming. This could be a portent of further disasters."


According to the opinion of the IEA, the impact of high oil prices on the global economy could contribute to "stubbornly high levels of unemployment and exacerbate budget-deficit problems" in many western nations.