Tensions in the Middle East have propelled oil prices to a more than two-year high and are causing more concerns for New Zealand motorists after this week's 5c-a-litre hike in fuel prices.
Alongside the gathering momentum of oil prices, spot gold prices reached record levels, while silver went to a 30-year-high and most food commodities around the world gained in value.
Spot gold hit its record high of $US1440 ($NZ1935) an ounce on Tuesday and remained high yesterday, trading around $US1436, while silver hit a 30-year peak at $US34.52 an ounce.
The United Kingdom Brent oil prices rse to $US116 per barrel, and in the United States, West Texas made gains to $US102.
New Zealand motorists absorbed a 5c-a-litre rise this week when most operators put prices up to $2.08 a litre, fuelled in part by the weakened New Zealand dollar at the time.
Petrol in New Zealand reached a record $2.19 per litre in July 2008, when oil was at a record $US147 per barrel after supply constraints in the US.
Craigs Investment partners broker Peter McIntyre said some of the strength in recent gold gains was coming from large hedge funds buying the precious metal.
However, as the Middle East situation escalated, investors were returning to gold as a "safe haven" hedge against inflation.
Nearly all commodities "across the board" were showing gains yesterday, including wheat, beans, pork and coffee, Mr McIntyre said.
Oil prices had risen as tension in Libya increased, spurring fears other producers in the Middle East and North Africa might face similar revolts, while crude and gasoline stocks unexpectedly fell in the world's top oil importer, the US, Reuters reported yesterday.
Libya could descend into civil war unless Muammar Gaddafi quit, the US said on Tuesday, as pressure intensified on the longtime leader after news of Western military preparations.
"If it continues to spread, Middle East tensions may reach a point where a war could start and that could ignite an incredible rally [in oil prices]," said Ryoma Furumi, a commodities sales manager at Newedge, Japan.
Oilfields in Libya could suffer prolonged outages if fighting broke out and damaged infrastructure, analysts said.
Libya has cut almost half of its 1.6 million barrels a day of oil output due to the departure of oil workers, although its oil installations are undamaged, the chairman of Libya's National Oil Corporation told Reuters.
