New York: Oil futures surged to a new record over USD120 a barrel today as supply threats emerged overseas and the dollar weakened against the euro.

Light, sweet crude for June delivery rose to a new trading record of USD 120.21 a barrel on the New York Mercantile Exchange today before retreating slightly to trade up USD 3.52 at USD119.84.

"The (oil) market is bolstered by news out of Iraq, where Turkish forces have once again been involved in cross-border raids against ... Insurgents, and Nigeria, where rebels attacked three oil wells and pipelines feeding (an) export terminal over the weekend," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut, in a research note.

Kurdish rebels today warned they could launch suicide attacks against American interests to punish the US for sharing intelligence with Turkey after Turkey bombed rebel bases in Iraq on Friday. Oil traders worry that any conflict in the oil-rich Middle East will cut oil shipments out of Iraq.

In Nigeria, a Royal Dutch Shell PLC spokesman said attackers hit an oil facility belonging to Shell's joint venture in southern Nigeria and that some oil production has been shut down. Nigeria is a major US crude supplier.

Also pushing oil prices higher were concerns about Iran after Supreme Leader Ayatollah Ali Khamenei said yesterday his country will not bend to international pressure and give up its nuclear programme. Iran is the second largest producer in the Organisation of Petroleum Exporting Countries.

Source : PTI