Oil prices hit record highs today amid continuing concerns about threats to supplies in Russia and Iraq.

The price of a barrel of light crude in New York reached 44.28 US dollars, 15 cents up on yesterday's closing price of 44.15 dollars.

The rise followed warnings yesterday from Middle Eastern oil cartel Opec that it could not boost production to cool prices.

Attacks on a key Iraqi oil pipeline and fears of potential breaks in supplies from Russian group Yukos were also fuelling the uncertainty.

Motoring organisations in the UK have said the price rises mean drivers should expect petrol to remain above 80p a litre for the "foreseeable future".

The increases took their toll on the London stock market today, with the FTSE 100 Index falling 34.1 points to 4395.6 and only seven blue-chip stocks recording rises in their share prices.

Wednesday August 04, 2004