The price of New York crude oil surged on Tuesday to a new record high of 113.93 dollars a barrel, boosted by a weak US currency (which encourages demand for dollar-priced crude because it becomes more affordable for foreign buyers ) and tightening energy supplies. Market participants also digested news that the crude-producing cartel OPEC left unchanged its 2008 estimate of growth in world oil demand.

OPEC on Tuesday left unchanged its 2008 estimate of growth in world oil demand, arguing that while high prices and slowing economies would brake demand in major industrialized countries, appetite for crude would remain robust elsewhere. The slowing world economy and mild winter in some industrialised members of the Organisation for Economic Coooperation and Development were the main reasons behind weak demand, OPEC argued.

Oil prices had fallen early on Monday owing to expectations of a drop in worldwide crude demand after Group of Seven finance chiefs expressed deep concern over the US economy at a weekend meeting, analysts said.