The escalation of the military conflict in the Middle East has helped to drive the world oil prices continually higher with new records being hit last week.

The Organization of Petroleum Exporting Countries(OPEC)'s average crude oil price rose to 71.71 U.S. dollars per barrel last Friday, hitting a new record, 1.33 dollars higher than the previous benchmark of 70.38 set just the previous day, the cartel's secretariat said on Monday.

The OPEC's weekly average crude oil prices also reached a new record last week, standing at 69.36 U.S. dollars per barrel.

International energy experts and market analysts attributed the soaring oil prices to the deterioration of the situation in the Middle East.

They believed that the military conflict in the Middle East negatively affected the trading atmosphere in the international oil market, although the conflict did not directly put pressure on the oil market.

They warned that the oil prices would sharply soar due to the shortage of crude oil supply, if the conflict in the Middle East should spread to the whole region.

Meanwhile, OPEC forecast in the Monthly Oil Market Report in July that "an easing of world economic growth to 4.2 percent from 4.7 percent" in 2007 would restrain the world oil demand next year.

"As a result, the crude required from OPEC in 2007 is projected to average 28.1 million barrels per day, or about 600,000 barrels per day lower than estimated for 2006", said the report.

Source: Xinhua