Oil prices notched up fresh record highs on Wednesday, fanning concern that consistently high prices are denting global economic growth. Brent crude rose 35 cents to $40.99 a barrel, its highest level since London's International Petroleum Exchange launched trading in Brent futures in 1988, before edging back to $40.86. U.S. crude struck $44.30 a barrel, 15 cents up from Tuesday's settlement and the highest since oil futures were launched on the New York Mercantile Exchange in 1983. "The oil price is of course a concern," said Germany's Finance Minister Hans Eichel. "It could slow economic growth." Oil prices have risen by more than one-third since the end of 2003 on worries that accelerating global demand has left supplies tightly stretched with little leeway for disruption. Some analysts fear that the relentless rise could take prices above $50 a barrel, with more damaging repercussions for the global economy. Allowing for inflation, prices are near the level hit during the 1973 oil embargo and just over half those during the oil price shock that followed the 1979 Iranian revolution. Some wider impact has already has already been felt. U.S. consumer spending in June fell at the fastest rate since September 2001, according to U.S. government data released on Tuesday. High oil prices contributed to the fall as consumers cut back on new vehicle purchases. --More 1800 Local Time 1500 GMT
