World oil prices soared above $98 a barrel this evening, not far from last month's record peak, as the market was affected by simmering tensions in key producing nations.
Traders said the speculative gains were driven by political concerns arising from tensions in Venezuela and Nigeria, despite worries about a possible slowdown in demand from the US.
US crude surged $2.90 to $98.40, while Brent North Sea crude leapt $2.23 to $97.14. Crude oil prices neared the historic peak of $100.09 that was struck at the start of January.
Venezuelan President Hugo Chavez said on Sunday that he would cut off oil deliveries to the US if his country was attacked.
US oil company ExxonMobil says it has won court orders in New York, London, the Netherlands and the Netherlands Antilles freezing some $12 billion of Venezuela's state-owned oil producer PDVSA assets in those jurisdictions.
The legal battle relates to ExxonMobil's bid to secure compensation after Venezuela's government nationalised key oil fields in the Orinoco basin, including two ExxonMobil operations.
Traders are meanwhile on alert over possible unrest in Nigeria, which has already cut the country's production by 25%.
