Oil leapt $5 to a new record high above $147 a barrel today, spurred by growing worries of threats to supplies from Iran and Nigeria and the possibility of a strike by Brazilian oil workers next week.

U.S. crude reached $147.27, taking gains in just two sessions to over $10. It rose $5.60 or 4 percent a barrel on Thursday in a late burst of buying activity.

London Brent crude was up $3.77 at $145.80 a barrel.

Leading the oil complex was ICE gas oil futures which climbed to a new record high of $1,336.75 a tonne amid strong demand for diesel and aviation fuel.

Analysts said the threat of supply disruptions provided the bullish backdrop, as the demand picture was unlikely to change much until after the Beijing Olympics.

"We continue to believe that the downside risk to oil prices remains relatively low until the non-OECD countries begin to show greater price and income elasticity response than has been evident to date," Deutsche Bank analyst Adam Sieminski said in a note.

Oil, which had been on the retreat for much of the week, reversed course yesterday as fears resurfaced of supply disruptions from potential hot spots, OPEC members Iran and Nigeria.

A spate of missile tests by Iran, the world's fourth-largest oil exporter, in the last two days against a backdrop of rising tensions with Israel and the United States has left the oil markets worried.