Mumbai: Crude oil prices vaulted to a new record high of $141.71, extending Thursday's gains, as tumbling stock markets triggered a global rally in commodity prices.

Oil's climb was also prompted by comments from Algerian energy minister and OPEC president Chakib Khelil that crude prices could reach $170 this year owing to a weak dollar and supply problems caused by regional conflicts.

Brent North Sea crude hit a historic high of $141.98 while US crude futures for August delivery was up $1.71 at $141.35 a barrel at 0930 GMT.

US light sweet crude rose to $141.71 in early morning trade on the New York electronic exchange.

Although prices later eased, North Sea Brent crude was still up $1.54 from Thursday's close at $141.33 a barrel. US sweet light crude for August was up $1.51 at $141.15 a barrel.

Crude prices have doubled in a year amidst supply bottlenecks in Iran, Iraq and Nigeria and production halts at North Sea and Venezuela. Oil cartel OPEC, however, blames the crude price spike on speculators and a weak dollar.

Weak stock markets have also prompted investors to seek alternative assets to cushion the effects of a falling dollar.

Oil prices, which also gained from falling US crude stockpiles, ignored announcements by OPEC major Saudi Arabia that it is raising output to 9.7 million barrels a day from the current 9.45 barrels a day.

Militant attacks on a key Chevron oil supply pipeline in Nigeria, meanwhile, forced the US oil giant to shut down activities in volatile Niger Delta, halting output by 120,000 barrels per day.

The Anglo-Dutch oil giant Shell has also said that it cannot promise to deliver 225,000 barrels per day for June and July following an unprecedented raid on its offshore Bonga oilfield.

Unrest in the Niger Delta has cut total oil production in one of Africa's biggest producers by a quarter over the past two years.

Soaring commodity prices have pushed inflation worldwide, increasing pressure on companies to pass costs on to consumers.

Food prices rose more than 60 per cent over the past one year while iron ore prices doubled. While rising crude and petroleum product prices have lifted plastics prices, other prices of key materials for building and manufacturing, including copper, aluminium and cement, have also risen fast.