Oil price near record close in US

BBC

Oil prices have climbed to within a cent of a record close in New York, raising concerns about the effect of higher energy costs on inflation.

The surge is particularly worrying as the threat of interest rate increases are shaking global stock markets and fanning fears about a credit crunch.

In New York, crude closed at $77.02 a barrel, just below the $77.03 record set on 14 July 2006.

Analysts said that oil prices could keep rising next week.