Oil prices reach record $100.10 per barrel

Oil prices reached a new record high yesterday, peaking at $100.10 per barrel before closing slightly lower at $100.01. There was no one major cause for the steep hike but some of the events that could have motivated investors include an explosion at refinery in Texas, a falling U.S. dollar, the possibility OPEC may cut production next month and the recent turmoil involving Venezuelan President Hugo Chavez.

The fact that there was no major underlying reason for the hike could be a sign of things to come. Demand for oil is increasing worldwide but suppliers have been slow to adjust production. The good news is that prices are still within the range of inflation-adjusted highs set in early 1980s, according to Reuters.

This latest news will be worrying for performance fans but don’t start looking to trade-in your muscle car for a hybrid or minicar just yet. Just last month prices were hovering around the $80 per barrel mark and analysts are expecting prices to return to those levels in coming months.