Oil prices jumped to record high levels above $142 a barrel today, as the US currency weakened further.
US crude was up 70 cents at $140.34 a barrel this evening, off a record high of $142.26 hit earlier in the day. London Brent crude was up 33 cents at $140.16, off a record high of $142.13.
Yesterday OPEC's president predicted that oil prices could reach $170 this year owing to a weak dollar and geopolitical unrest.
Crude futures crossed $140 for the first time following the price forecast made by OPEC's chief, Algerian Energy Minister Chakib Khelil.
After achieving new peaks today, New York's main oil futures contract, light sweet crude for August, was trading at $141.40, up $1.76 from yesterday's close.
Brent North Sea crude for August delivery stood at $141.06, a rise of $1.23.
The cost of oil has doubled in a year, with consumers blaming the surge on insufficient output from the Organisation of Petroleum Exporting Countries.
However OPEC, which produces 40% of the world's oil, argues that speculators are responsible for pushing up crude in reaction to a falling dollar and tensions in oil-producing countries, such as Iran, Iraq and Nigeria.
A weak US currency makes oil priced in dollars cheaper for foreign buyers, thus pushing up demand for the commodity.
