Oil prices have hit a record high above $127 a barrel on fresh worries about global supplies.

US light sweet crude jumped to $127.43 a barrel, ignoring a forecast from producers' cartel Opec this week that the world will need less oil in 2008.

London Brent crude also climbed, touching $125.82 a barrel.

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The latest price rise comes as US President George W Bush flies into Saudi Arabia to urge the kingdom to pump more crude and help bring prices down.

The US has already agreed to help protect Saudi Arabia's oil infrastructure from terrorists and help it develop environmentally cleaner energy options.

But so far, oil cartel Opec, of which Saudi Arabia is a key member, has refused to increase production, insisting that the price rises have been driven by speculators and not real demand problems.

(BBC)

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