NEW YORK (CNN/Money) - Oil prices rallied again Friday as traders worried about terrorism and low stockpiles of gasoline that could lead to shortages over the upcoming summer driving season.
The gains extended a recent rally that has pushed crude prices to the highest level since Iraq invaded Kuwait in October 1990.
Light crude oil for April delivery rose 37 cents to $38.30 a barrel at mid-session, while the May contract climbed 21 cents to $37.60 on the New York Mercantile Exchange.
In London, Brent crude rose 15 cents to $33.28 a barrel.
Last week's Madrid bombings which killed more than 200 people and are suspected to be the work of militant group al Qaeda, have sparked fears of attacks that could disrupt oil supplies.
Prices for the most desirable grades of U.S. crude oil have jumped more than 4 percent this week, pushing them to $35 a barrel on average so far this year, well above last year's $31 average -- the highest in more than two decades.
Soaring Chinese demand and low U.S. fuel inventories ahead of peak summer holiday driving consumption have helped fire the rally.
The U.S. government's Energy Information Administration said on Wednesday gasoline stocks dropped 800,000 barrels last week to stand 5 percent below the five-year average.
And the Organization of the Petroleum Exporting Countries (OPEC) plans to cut official output by 4 percent in April to 23.5 million barrels a day.
OPEC President Purnomo Yusgiantoro said OPEC was worried about high prices but would not back track on the cut since crude had been allocated to customers for April.
-- Reuters contributed to the story
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