Supply concerns and evidence of rising demand from China drove oil to a record and within striking distance of $120 a barrel while grains prices also rose strongly but gold remained rangebound .

Nymex May West Texas Intermediate reached $119.90 a barrel before easing slightly to trade $1.89 higher at $119.37. The May contract was due to expire on Tuesday and June WTI reached a session high of $118.98, up $2.35.