Crude oil topped US$124 a barrel yesterday afternoon after European Central Bank decided to leave interest rates unchanged.

Light, sweet crude for June delivery surged to US$124.61 a barrel in the after-market electronic trading on the New York Mercantile Exchange, the highest since oil futures started trading in 1983.

Earlier in the afternoon crude futures rose to a record closing price of US$123.69, trading up 16 cents up. In London, Brent crude futures for June delivery settled at US$122.84 a barrel, trading up 52 US cents.

Jean-Claude Trichet, president of the European Central Bank, told a news conference that the interest rates will remain unchanged to fight inflation. New York market reacted with a rising euro against the dollar.

Crude futures waffled yesterday morning after the Organization of Petroleum Exporting Countries denied shortage of oil supply and blamed the turmoil in equity market and a weaker dollar for recent price hike. Oil prices retreated to as low as US$121.58 on NYMEX before scissoring up later.

Oil prices touched an intraday record of US$123.93 a barrel Wednesday after US Energy Department's weekly report suggested a fall in distillate fuels supply.