Oil Prices Hit New Record Today

Oil prices have risen to a new record, topping $104 a barrel in New York.

The move came after the government reported a surprise drop in crude oil stockpiles and OPEC held production levels steady.

Most analysts had expected the Energy Information Administration to report oil supplies rose last week for the eighth straight time.

Instead, they fell by 3.1 million barrels.

In Vienna, meanwhile, OPEC said it would hold production levels steady, at least for now. Ministers said slowing economic conditions in the U.S. and falling demand for oil and gasoline shows the world is well-supplied with crude.

Gasoline demand is off about 1 percent over the last six weeks compared to the same period last year, according to government. At the same time, gasoline supplies rose last week to a 15-year high, according to one analyst.

Story courtesy of the Associated Press. (2008)