World oil prices fell as low as $118 a barrel in Tuesday's trading, with investors apparently speculating that the economic slowdown in the United States and some other nations will cut demand for energy.

Oil prices fall below 130 dollars a barrel sending India's Sensex 523 pts up. Crude oil prices fell 5.31 dollars at 129.29 US dollar a barrel, the lowest since 5th June on the New York Mercantile Exchange on Thursday while the Sensex rose by 523 points on heavy buying supported by cooling crude prices.

Global oil prices will jump to unprecedented levels in case of any aggression against Iran, the country's oil minister said on Saturday.

Gold fell for a second day in Asia as the dollar rallied on signs the Federal Reserve may be finished cutting interest rates and as crude oil traded below record highs, eroding the appeal of the precious metal as an inflation hedge.

Crude oil fell below 100 dollar a barrel after a US government report showed demand dropped and investors sold commodities on concern an economic slowdown will lower consumption.

Crude oil prices briefly surged Tuesday to a record of $109 a barrel before easing back down, and the International Energy Agency warns that higher prices are here to stay.

Crude oil prices continued their surge Thursday hitting a new record high of nearly $106 a barrel.

World oil prices traded higher in Asia on Monday after US President George W Bush called for a multibillion-dollar stimulus plan to help kick-start his nation's flagging economy.

World oil prices edged up on Friday, after shooting close to 100 dollars earlier this week, as traders worried about tight supplies and geopolitical jitters in key producers.

Oil prices bounced back toward $95 a barrel on Tuesday, gaining almost 1 percent as Asian stock markets steadied and traders bet that falling U.S. inventories and the approaching winter could help restart oil's rally.

To achieve strong U.S. economy and tight supplies of heating oil this winter, crude oil futures went back above $95 a barrel Friday.

Crude oil has risen to an all-time high during trading in Asia to close at US$86.13 a barrel, up $2.44.