Oil jumped to a record above US$126 a barrel at the weekend, extending gains to more than 11 per cent since the start of the month on fuel supply concerns and a rush of speculator buying.

Waves of buying materialised on Friday, particularly from speculative interests.

Investors have seized on disruptions to crude oil supplies in the North Sea and Nigeria, as well as galloping demand for distillate fuels, a category that includes diesel fuel and heating oil.

Strong demand for diesel fuel in Europe, along with the growing use of distillates for generators to supplement strained power grids in fast growing emerging markets, have cut into stocks of distillate fuel and pushed up prices sharply.

An OPEC source has said the group might consider boosting output before its next scheduled meeting in September should crude oil prices keep rising.