Oil prices surpassed $103 a barrel for the first time on Friday as persistent weakness in the US dollar and the prospect of lower interest rates attracted fresh money to the oil market.

London-based oil traded at all-time highs around USD 100 in Asia on Wednesday while New York oil rose above USD 101, boosted by an inflow of funds and ahead of an OPEC meeting next week.

Iraq has halted crude oil exports to South Korea, in protest of an exploration deal between Korean firms and the Kurdish regional government.

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.

Oil prices fell further on Wednesday amid a growing belief that the US economy is slowing and that energy demand will weaken as a result.

The OPEC move reflected concerns about raising production quotas at a time when oil prices have been retreating.

Venezuelan President Hugo Chavez threatened to stop oil exports to the US if violence he claims it is plotting breaks out after a hotly contested weekend referendum aimed at expanding his powers.

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.

OPEC members don't even want to publicly talk about the collapsing dollar for fear it might accelerate the precipitous decline. Of course the accidental airing of OPEC concern from a meeting in Saudi Arabia that people will find out they are concerned about falling dollar will have far worse ramifications.

Brazil has discovered huge new petroleum reserves in its south that could turn the country into one of the biggest oil producers in the world, the government and its state-controlled oil company.

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.

Oil has risen to a new all-time record high during trading in Asia, passing US$91.10 at 10:23 p.m. (eastern time).