Oil and gold prices have spiked globally with oil fetching more than $US90 ($NZ117.60) per barrel for the first time in 26 months, again raising the possibility of fuel price rises going into New Zealand's summer holiday season.
Gold, which often moves in tandem with oil prices, again breached the $US1400 mark on the back of increased investor uncertainty over the world's equity markets.
The third consecutive oil price rise in the United States last week, which hit a 26-month high, reflected the continued weakening US dollar and the cold start to northern hemisphere winters in the US and United Kingdom, where heating fuel accounts for a large proportion of oil use.
Yesterday, crude oil in West Texas and Brent oil from the North Sea in the UK touched more than $US90 per barrel.
Craigs Investment Partners broker Peter McIntyre said the combination of a weak US dollar, global recovery led by Asia, boost to national oil inventories and a cold northern winter all prompted a surge in the oil price.
"The global recovery is pushing up demand [and prices] but US fuel use for winter heating always seems to hit as New Zealand prepares to go on holiday," he said.
Petrol and diesel prices rose 4c a litre on December 1, reflecting rising crude oil and refined fuel prices and a weakened New Zealand dollar at the time.
It was the first retail price increase for six weeks, according to the AA's petrolwatch.
Yesterday, at least one major petrol supplier put its high octane fuel up a further 4c per litre.
At least four major US banks boosted longer-term outlooks for oil prices this week.
One of the most bullish, Goldman Sachs, called for US crude futures to rise to $US100 a barrel next year, as global economies rebound faster than expected, Reuters reported.
Gold on the London Metals Exchange was hoisted above $US1400 again to $US1406; having eased back to the mid-$US1300's after hitting a record $US1424 in early November.
Mr McIntyre, who has forecast gold prices to hit $1600 by the end of 2012, said gold was underpinned in recent days by US unemployment figures rising to 9.8%, uncertainty in global equity markets, and the likes of China, which was overexposed to US Treasury notes yielding little and instead was turning to gold, albeit with no interest rates but on the expectation of making capital gains.
"Gold is not expected to straight-line through $US1500 to $US1600. There will be plenty of volatility, such as profit takers," but he reiterated his forecast of $US1600 within two years.
Plunging temperatures remain in Europe, with transport services snow-stricken and 12 people frozen to death in Poland, while in the US the colder weather prompted a surge in demand for heating oil.
US crude futures for January rose $1.19 to settle at $US89.19 a barrel, the highest close since October 7, 2008, bouncing after an early decline on the weak jobs data, Reuters reported.
Prices rose 6% during three days, the biggest such percentage increase since the three days to October 1.
For last week, US crude rose 6.48%, a second straight weekly gain and the largest percentage gain since that of 6.66% in the week to November 5.
