Oil prices struck another record high today and remained supported above $47 by a fall in US crude stockpiles and threats by insurgents in Iraq against oil facilities.

Edgy nerves were little calmed by Opec assurances that it had raised output in July to a level that should permit a substantial build-up in world oil stocks in the fourth quarter, analysts said.

US light crude jumped in early trade to $47.50 a barrel, the highest in the 21-year history of the New York Mercantile Exchange contract, before easing to $47.37, up 10 cents from its previous close.

Global markets had breached $47 yesterday on evidence from major economies and assertions from Opec that energy costs were not substantially slowing economic growth, which in turn fuels demand for oil.

US oil has set record peaks in all but one of the past 14 trading sessions and is up about $10 a barrel, or 27 per cent, since the end of June.

'The market remains nervous about supply disruptions from Iraq,' investment bank Rothschild said in a report.

'The rise comes as the Organisation of the Petroleum Exporting Countries has sought to calm the markets by vowing to produce well in excess of demand, but with OPEC already so close to production capacity, the assurances have fallen on deaf ears.'

US oil demand so far this year is up 3.4 per cent, preventing inventories from building much. Rising consumption has absorbed extra imports from Opec producers such Saudi Arabia.-Reuters