Oil sets new record high of $122 a barrel

Oil set a new record high of $122 a barrel yesterday, the latest spurt in an advance that has seen prices double over the past 12 months.

Supply disruptions in Nigeria, where a strike and attacks by militants has hit production, have helped boost a market that is nervous about any threats to supply.

Tensions with Iran rachetted higher when the world's fourth-biggest oil producer refused to accept intrusive inspections of its nuclear programme that the West fears could be linked to weapons.

US light crude for June delivery was up $1.79 at $121.76 a barrel, by 1412 GMT after earlier touching a record high of $122.

London Brent crude was up $2.29 at $120.28 a barrel, after an earlier record of $120.35.

Gold was also strong, as oil's advance helped spur a rebound from a four-month low last week. But gold is still some way below a record of $1,030.80 an ounce reached on March 17.

Goldman Sachs predicted oil could soar towards $150-$200 a barrel because of a lack of adequate supply growth.