Crude futures surged sharply and broke the US$140 level for the first time yesterday as OPEC predicted oil prices to rise and Libya threatened to cut production.

Light, sweet crude for August delivery rose US$5.09 to settle at a record US$139.64 a barrel on the New York Mercantile Exchange. Prices continued to rise in the after hour electronic trading and hit US$140.39 a barrel, surpassing the previous intraday trading record of US$139.89 a barrel on June 16.

OPEC President Chakib Khelil said yesterday he believes oil prices could rise to between US$150 a barrel and US$170 a barrel this summer. Khelil's forecast caused a jump in prices.

Meanwhile, Libya national oil company said the country may curb output because the oil market is well supplied, according to news reports of France 24. A falling dollar also helped to push up the crude.

In London, Brent crude for August delivery rose US$5.5 to settle at US$139.83 a barrel on the ICE Futures Exchange after touching a record of US$140.56 a barrel.