Crude oil prices could surge to $200 a barrel in the next two years, according to theGoldman Sachs analyst who three years ago correctly predicted a price "super-spike" above $100 a barrel. The warning by Arjun Murti came as oil prices hit a fresh record high above $122 a barrel, boosted by supply disruptions in Nigeria, lower output in Russia and continued robust demand in China ahead of the Olympics. Mr Murti said the energy crisis could be coming to a head as a lack of adequate supply growth was becoming apparent.

European gas oil prices set a new high above $1,000 a tonne on Tuesday, boosted by a fire in a key European refinery last week and unexpectedly strong demand. Power blackouts in South Africa, Chile and China have forced many companies to run diesel generators to offset electricity supply interruptions, while a harsh winter in south-east Asia has boosted heating oil demand. ICE April gas oil futures hit a record $1,017 a tonne on Tuesday, up 1.3 per cent on the day and 21.2 per cent since the start of the year.

Soyabean and wheat prices continued falling yesterday as traders chewed over the implications of the dramatic shifts in agricultural production likely across the US farming industry this year. Both soyabeans and wheat are on course for a large increase in farmland devoted to their production, while last year's rush by US farmers into corn to feed the requirements of the ethanol industry will be partially reversed.

US farmers have rarely been so spoiled for choice when it comes to choosing which crops to plant. Corn, wheat, soyabean, oats, rice, barley, hay, canola and sunflower prices are all at or near record levels. Which crops farmers will plant this year should become clearer on Monday when the US Department of Agriculture publishes its Prospective Plantings report, based on a survey of 86,000 farm operators in the first two weeks of March.