A new record was again set for oil on Thursday when prices reached above $135 a barrel. It was supply, or lack of it, that fuelled yesterday’s surge as data showed a fall in US stock levels below 5.4 million barrels ahead of their ‘driving’ season. Last May, prices were at $65 a barrel. With oil price increases seeping through to all corners of the economy, the Government is seeking to encourage Opec to increase production but efforts are likely to prove fruitless, especially as all but 3 Opec members are running at full capacity. While some argue that the efforts should be targeted at long-term investment, there are some questioning whether we have in fact passed the peak and entered terminal production decline. Last month Russia, the world’s 2nd largest producer, reported a production decline and even suggested that the country may have reached its peak. While Saudi Arabia, the worlds largest producer, confirmed it had halted plans to increase production capacity leaving some to wonder whether her time had come too. All that is certain is that there are likely to be more ‘price records’ for oil in the coming weeks and months.