Oil prices climbed more than one dollar a barrel today and settled at their highest level in more than seven months as geopolitical friction kept traders nervous about supplies.

The Organisation of Petroleum Exporting Countries (OPEC) essentially sat on its hands yesterday in the face of soaring oil prices by deciding to keep its output steady.

THE dollar struck a two-month high against the euro yesterday, driven by the belief the US Federal Reserve may introduce a tough interest rate regime.