Oil prices have spiked to a record high of $122.49 as the market was driven by concerns over violence in key producer Nigeria and events in Iran.
After hitting the fresh high, New York's main oil futures contract, light sweet crude for June delivery, pulled back slightly to stand at $122.35 per barrel, still up $2.34 from Monday's close.
London's Brent North Sea crude for June also reached an all-time high of $120.96, before slipping back to $120.59 for a gain of $2.46.
Runaway oil prices have almost doubled in the past year and have surged by more than $20 since the start of 2008.
The latest record price levels beat the previous all-time highs that were set earlier today.
Nigerian militants attacked an oil ship off the coast of the west African country and took two people hostage over the weekend. Nigeria, Africa's largest oil producer, has seen an upsurge in violent attacks on its oil industry in the past two years.
Events surrounding Iran, the world's fourth biggest oil producer, also added support to prices today.
Yesterday Iran said it would reject any offer that violates its right to master the full nuclear fuel cycle after world powers said they had prepared a new package to end the atomic crisis. The West fears Iran could use uranium enrichment to make atomic weapons. Iran denies it wants to do this and insists it has a right to enrichment to make nuclear fuel as a signatory to the nuclear Non-Proliferation Treaty.
Oil prices also continued to profit today from the weak dollar, which helps boost demand for commodities priced in the US unit, as they initially become cheaper for foreign buyers.
The recent record run in oil prices has sparked widespread international concern among consumer nations.
