Oil is trading at a record high of $ 86, the highest level in years

Oil hit a three-year high above US$ 86 a barrel yesterday driven by tight supply and a global energy crunch, although prices eased as some investors took profits on signs the rally is looking overstretched.

 

The price of Brent has risen over 60 percent this year, supported by a slow ramp-up in supply by the Organization of the Petroleum Exporting Countries and allies, and a global coal and gas crunch which has driven a switch to oil for power generation.