Crude oil near $142 a barrel as commodities rally

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.