Oil prices hit record levels above $120 a barrel on Monday amid growing hopes that the US economy might avoid recession and further supply disruptions in Nigeria.

Nymex June West Texas Intermediate hit a record $120.21 a barrel before easing back to trade $3.50 higher at $119.52 while ICE June Brent surged $3.39 to $117.95 a barrel after reaching a new peak of $118.50.