Oil prices rocketed to records above $US147 today as traders seized on the weak US currency simmering tensions over crude producers Iran and Nigeria and news of a looming strike in Brazil.


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New York's main oil contract light sweet crude for August hit an historic peak of $US147.27 a barrel before closing at $US145.08 a gain for the day of $US3.43.

London's Brent North Sea oil for August delivery jumped as high as $US147.50 to beat the previous record of $US146.69 set on July 3.

The contract settled up $US2.46 at $US144.49.


Global problems


With markets already in a frenzy over tensions with Iran and problems in Nigeria news of a strike in Brazil added to speculative fervor.

Workers for Brazil's state-run oil giant Petrobras are to start a five-day strike on Monday.

The main union covering Petrobras workers in the key Campos off-shore area in south-eastern Brazil confirmed to AFP today that the near-total stoppage would occur.

Prices had dived below $US140 on Monday as a result of a then strengthening US currency underlining the extreme volatility that the market is currently experiencing.

Today traders continued to track Iran which is OPEC's second-biggest crude oil producer with output of about four million barrels per day.

The White House played down the risk of war between Iran and the United States despite Iranian missile tests and some tough talk by US Secretary of State Condoleezza Rice.

Rice warned Iran that Washington had beefed up its security presence in the Gulf and would not hesitate to defend its ally Israel.

Meantime in producer Nigeria violence in the restive southern Niger Delta oil region has already reduced Nigeria's total oil production by a quarter since January 2006.
Source: AAP/SBS