SINGAPORE (AFP) - Oil prices eased in Asian trade but remained near record levels, with analysts saying demand during the northern winter and continued violence in Iraq could push them higher still.
At 11:40 am (0320 GMT), the benchmark light sweet crude for November delivery was at 50.91 US dollars a barrel, down from its record close of 51.09 dollars sy the New York Mercantile Exchange.
"It's going to go up, it's going to be one-way traffic," said Ng Weng Hong, editor of industry publication EnergyAsia.com.
"I think the immediate target is 55 dollars but whether we hit it or not is another matter.
"Winter is coming in North America and geopolitical problems have not been solved. All you need is a couple of terrorists to inflict effective damage on a pipeline and this will shake up the market further."
Ng also noted that even at 50 dollars a barrel, there has been no let-up in oil demand.
The high prices, instead of dampening demand, have sparked panic buying and further pushed prices higher, he added.
"There are more guys buying because they think it's going to go to 60 dollars a barrel. Nobody is letting up," he said.
Ng disputed arguments by some analysts saying that current prices were in reality lower than levels seen during the oil shock in the 1970s and '80s if inflation was factored in.
"We're going to be in for a very serious shock. This is giving a lot of false comfort because the conditions now compared with the conditions then are very different," he said.
"Back in the '70s and '80s, there was no China or India factor to look at. There was a lot of spare capacity then."
China's huge demand for fuel to power its rapidly growing ecomony is soaking up supply, while more oil is needed to meet the requirements of India's own economic growth, analysts say.