Crude oil prices surged above $117, setting a new record high this afternoon because of worries of supply disruptions from major producers and comments by OPEC reiterating there is no need to raise output.
US light crude struck a record high of $117.40 a barrel. London Brent crude also struck its all time peak of $114.65. It was trading at $114.20, up by 28 cents.
The Organisation of the Petroleum Exporting Countries (OPEC) sees no need to raise oil production to counter high oil prices, the group's president Chakib Khelil said yesterday.
His remark was followed by Iranian oil minister Gholamhossein Nozari, who said on Monday oil prices were not too high in real terms.
"OPEC's assertion that an increase in its oil production will not help to bring down prices should be put to the test," the Centre for Global Energy Studies said in a research note.
These remarks come amid concerns over North Sea production due to an impending strike by workers at a refinery in Scotland and supplies from Nigeria, Africa's largest oil exporter.
Scottish oil refinery Grangemouth has started to shut down ahead of a two-day strike later in April.
If the union goes ahead with the strike, it will effectively close down a part of the North Sea oil production and some gas output, refinery operator Ineos said in a statement on Saturday.
Refined oil product prices also soared as such a refinery hiccup could further tighten fuel supplies.