Oil prices rocketed to record highs above $147 a barrel this afternoon as the US dollar weakened and tensions over Iran and Nigeria continued.
London Brent jumped as high as $147.50 to beat the previous record of $146.69 set on July 3. US crude also topped $147 for the first time - reaching a historic $147.27.
After hitting the latest peaks, London Brent stood at $144.15 this evening, up $2.12 from Thursday's close. New York crude was $4.90 higher at $146.55.
Oil prices had swept back into record territory after the euro touched $1.59 - not far off April's record $1.6019.
The weak dollar boosts demand for dollar-priced oil which becomes cheaper for buyers using stronger currencies.
Oil had rallied by almost $6 on Thursday on the back of political tensions over key producer Iran and worries over stretched global crude supplies. The White House played down the risk of war between Iran and the US, despite Iranian missile tests and some tough talk by US Secretary of State Condoleezza Rice. Rice warned Iran that the US had beefed up its security presence in the Gulf and would not hesitate to defend its ally Israel.
In crude producer Nigeria, meanwhile, kidnappers seized at least one foreigner working for a German company in the restive Niger Delta oil region, according to a police source.
* German airline Lufthansa has announced a new fuel surcharge on European and intercontinental routes owing to rising oil prices. From July 17, the airline will charge an extra €3 on European flights, raising the total surcharge to €27, while intercontinental services will cost an additional €5, for a total surcharge of €97.
