From Reuters
By Paul Marriott

Oil prices surged to record highs above $78 on Friday as global geopolitical storm clouds gathered, with supply disruption in OPEC exporter Nigeria and tensions across the Middle East driving crude into unchartered territory.

Escalating conflict between Israel and Lebanon and fresh supply fears in the world’s eighth-largest exporter, Nigeria, took centre stage, firing prices 1.8 percent above Thursday’s close and over $80 a barrel for fourth-quarter delivery contracts.

Iran’s nuclear stand-off with the West limped back to the U.N. Security Council, North Korea stormed out of talks with South Korea, and falling crude stocks in the world’s top oil consumer, the United States, continued to bolster prices.

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