The price of crude oil has hit a new high of close to $140 a barrel in New York trade, despite Saudi Arabia agreeing to increase output in July.
US light crude rose to a record high of $139.89 a barrel, surpassing the previous high of $139.12 set on 6 June. The price later fell back slightly to trade up $4 at $138.86 a barrel.
On Sunday, Saudi Arabia had said it would increase its oil production by 200,000 barrels a day next month in a move to meet growing world demand.
That would make a total rise of 550,000 barrels a day, or over 6%, since May and would take Saudi output to its highest monthly rate since August 1981.
The news was announced after UN Secretary General Ban Ki-Moon met Saudi Oil Minister Ali al-Naimi in Jeddah for talks on the high oil price.
Last month, Saudi Arabia increased its production by 300,000 barrels a day.
The country is thought to be the only oil producer with the ability to pump substantially more crude.
It argues that the current high prices are caused by speculators rather than any shortage of crude oil.
Oil prices had fallen by almost $2 on Friday after reports that Saudi Arabia might boost oil production but many believe that this pledge is too little too late to bring down oil prices
