Terrorism fears send oil to almost $64

oil price surge followed an announcement that the United States is shutting its embassy in Saudi Arabia, the world's biggest oil supplier, for two days because of a "threat against U.S. government buildings" there.

Britain, meantime, said it believes terrorists plan to strike Saudi Arabia soon.

Traders underpinned their belief in higher oil prices by noting that worldwide demand continues to grow, that U.S. refineries are running nearly flat out turning oil into gasoline, and that U.S. motorists continue to use more gasoline despite record U.S. fuel prices. "The market clearly has the jitters," Deborah White, energy analyst at SG Securities in Paris, told the Associated Press