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Global crude oil prices shot up to $54.28 per barrel for the first time in history on Tuesday.
Following the nationwide strike that began in Nigeria to protest against high fuel prices on Monday, oil future prices zoomed to a new high in New York of $53.64. But the increase of 64 cents on Tuesday saw crude ruling at its highest ever.
The strike in Nigeria comes at a time when a rebel leader is threatening to take back the giant Niger Delta oil fields if peace talks with the government fail. Nigeria pumps about 2.5 million barrels of oil everyday.
Shortage of supply from big suppliers -- like Mexico and Nigeria -- and a big jump in demand have added to the rise in oil prices.
With the prices of oil going ballistic, investment bank Morgan Stanley forecast a fall in global economic growth to 3.6 per cent from 3.9 percent.
In London, the benchmark Brent future breached $50 per barrel for the first time on Monday touching $50.62.
While most stock markets seem unworried over the huge rise in oil prices, economists believe that the rising tags will put an unbearable inflationary pressure on the global economy.
Some economists have also predicted that the global oil prices could touch $60 per barrel in the coming months.