* Oil hits new record high near $142
* World stocks fell to a three-month low
* U.S. lawmakers urge CFTC to investigate market behaviour
(Updates prices)
LONDON, June 27 (Reuters) - Oil leapt to a new record high
near $142 a barrel on Friday, extending gains after surging
nearly 4 percent in the previous session, as tumbling global
stock markets triggered a wider commodities rally.
U.S. light crude for August delivery <CLc1> was $1.71 up at
$141.35 a barrel by 0925 GMT, off highs of $141.71. London Brent
crude <LCOc1> was $1.56 up at $141.39, off highs of $141.98.
World stocks fell to a three-month low as a fast
deteriorating global inflation picture fanned concerns over the
outlook for corporate profits, hastening the rush of investors'
funds into commodities.
"It has a lot to do with asset allocations. The equity
markets are under serious pressure, breaking support levels.
When equities are going nowhere, the money is parked into
commodities," said Olivier Jakob at Petromatrix.
The MSCI main world equity index <.MIWD00000PUS> fell more
than 0.6 percent to its lowest since March, with the index on
track for the worst monthly performance in percentage terms
since September 2002, according to Reuters data. []
By contrast, commodities fared better, with gold steady near
a one-month record high [] while U.S. corn futures jumped to
a fresh record high. []
CURB SPECULATION
Oil's latest surge comes despite moves in the U.S. to curb
energy market speculation.
U.S. lawmakers on Thursday have approved legislation which
directs the Commodity Futures Trading Commission (CFTC), the
futures market regulator, to use all its authority including
emergency powers to "curb immediately" the role of excessive
speculation in energy futures markets. []
Oil prices have doubled from $70 a year ago on supply
disruptions and geopolitical tensions in the Middle East. Rising
flows of cash into commodities from investors seeking to hedge
against inflation and the weak dollar have also added to gains.
"It may be months away before the legislation comes into
effect but just the fact that it was passed is definitely enough
to give the market a little bit of a bearish sentiment," said
Toby Hassall, analyst at Commodities Warrants Australia.
Oil, which had been trading in a range for most of the week,
broke out of that range after Libya said it was studying
possible options to cut output in response to potential U.S.
actions against OPEC countries.
"We are studying all the options," Libya's most senior oil
official, Shokri Ghanem, told Reuters, adding oil producers
needed protection from what he viewed as U.S. attempts to extend
its jurisdiction beyond its territory. []
OPEC President Chakib Khelil's comments that prices could
reach $170 a barrel in the coming months, also fuelled the
rally. "I forecast prices probably between $150 and $170 during
this summer. That will perhaps ease towards the end of the
year," he told France 24 television.
Talks between oil workers and Chevron continued in Nigeria,
with the oil minister saying he was confident a deal could be
reached, but union officials left open the possibility of a
strike early next week. []
(Additional reporting by Fayen Wong; Editing by William Hardy)
