Oil prices hit a record of more than $120 a barrel on Monday, driven by fresh supply disruptions in Nigeria and a growing sense of optimism that the US economy might escape recession.

Nymex June West Texas Intermediate reached a record $120.36 a barrel before ending trading in New York up $3.65 at $119.97, while ICE June Brent surged $3.43 to $117.99 a barrel after reaching a new peak of $118.58.