Crude oil prices surged to a record above $125 a barrel on speculation that reduced exports from Nigeria will curb US supplies during the peak summer season.

US light sweet crude for June delivery climbed as much as $2.29, or 1.9 per cent, to $125.98 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $125.50 at 12:39 am London time.

Crude for June delivery rose to $124.70, surpassing the previous record of $124.61 hit yesterday. The June crude contract was $124.55 a barrel on the Globex electronic trading platform, up 86 cents, or 0.7 per cent. London Brent crude rose 85 cents to $123.69 per barrel.

Brent crude for June settlement jumped as much as $2.84, or 2.3 per cent, to a record $125.68 a barrel on London's ICE Futures Europe exchange. It was at $124.94 at 12:39 a.m. London time.

Gasoil futures, the benchmark for diesel fuel, also rose to a record $1,187 a metric ton in London, gaining 2.9 per cent.

Oil has risen 7.4 per cent this week, the biggest weekly gain since March 23, 2007. Prices have doubled in the last year.

The US distillate stocks, including heating oil and diesel, fell 100,000 barrels last week to 105.7 million barrels, Energy Information Administration (EIA) said.

Oil saw its biggest weekly gain in more than a year after rebel attacks on a Nigerian oil pipeline forced Royal Dutch Shell Plc to cut back production.

Oil cartel OPEC also said it doesn't need to increase supplies, even as its president warned prices may reach $200 a barrel.