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.

OIL held above $67 a barrel yesterday as dealers feared Hurricane Katrina could threaten Gulf of Mexico rigs supplying the United States, the world's largest fuel burner.

OIL prices rose yesterday following Monday’s fall of nearly $3 in the face of rising US stockpiles and expected warmer winter weather.