Oil prices have surged past $129 a barrel as Opec comments that it would not be boosting output in the coming months increased concerns about supply.
Speculation that China would need to import more fuel in the aftermath of its earthquake also continued to drive prices, analysts said.
US light crude hit $129.31 a barrel before falling back to $128.70. London Brent crude added $1.77 to $126.83.
Oil investor T Boone Pickens forecast that prices would reach $150 this year.
Last week, prices were supported by Goldman Sachs forecasting that oil would reach $141 a barrel later this year.
Observers said that other factors spurring on the market included limited supplies of refined products such as diesel ahead of the US driving season.
The weak US dollar has also been strongly linked with surging oil prices, as investors look to buy into commodities instead of the greenback.
