Oil prices set a new record high above US$102 a barrel today, sparking fears of more pain for motorists on UK forecourts.

Oil traded near record highs today after the discovery of pipeline corrosion caused BP to close the biggest production field in the United States.

Crude oil futures surged past $70 a barrel for the first time today as Hurricane Katrina headed toward the heart of US oil and refinery operations in the Gulf of Mexico, shutting down an estimated one million barrels of refining capacity.

Crude futures rose to a new high near $49 a barrel as the threat of sabotage to Iraqi oil infrastructure loomed larger than promises from Baghdad to boost exports in coming days.

NEW YORK crude oil futures may fall this week as surging imports from the Organization of Petroleum Exporting Countries boost US inventories, according to a survey of traders and analysts.