Although the demand on crude oil is constantly rising OPEC won't raise its output while the prices are growing.
Crude oil for delivery briefly rose 22 cents to hit $29.55 a barrel on the New York Mercantile Exchange, the highest price since 14 September.
Yesterday's leap was triggered by a warning from Kuwait that Opec, the cartel of 11 oil states, would not sanction a rise in output unless the price rose further.
Opec will wait unless the oil price broke through $28 on an index used by the cartel, that is currently at $26.58 a barrel.
Yesterday's price hike follows a jump of $2 a barrel during last week on mounting speculation the US was poised to launch an imminent attack on Iraq.
The price has also been supported by evidence that oil inventories are dwindling. The most recent crude inventory levels showed stocks at 17-month lows.
OPEC's policy may lead to rates cutting if oil price stayed above $30.