Oil prices hit $40 a barrel on Friday on concerns over security in the Middle East and tight U.S. gasoline supplies, underlining concerns that world economic growth may be reined in by rising energy costs. U.S. light crude touched $40 for the first time since October 1990, shortly after Iraq's invasion of Kuwait in the crisis that led to the Gulf War. It later eased to $39.82, 43 cents higher on the day. London Brent peaked at $37.18 and by 1715 GMT was up 47 cents at $37.00 a barrel.
Oil analysts say prices are not likely to ease much any time soon. In the United States, the Bush administration is concerned about the impact of high prices at the pump in an election year and is calling on the Organisation of the Petroleum Exporting Countries to calm prices by increasing output. Treasury Secretary John Snow said the oil spike is "not helpful" for the economy.
Accounting for about 45 percent of world gasoline consumption, the United States has seen retail prices hit record highs this year with demand bolstered by the growing numbers of low-mileage-per-gallon sports utility vehicles on America's highways. U.S. gasoline futures on Friday set a record $1.335 a gallon.
