Oil prices surged to a record near $58 ( €44.99) a barrel last night, powered by a forecast the market could spike above $100 due to robust global demand and tight spare capacity.

Prices have climbed around 30 per cent this year, with big-money speculative funds buying heavily on signs that rapid demand growth in Asia's emerging economies and the United States would strain world supply.

US light crude rose $2.40 to $57.70 a barrel, breaking the previous peak of $57.60 hit March 17th.

London's Brent crude climbed $2.22 to $56.51.

US gasoline futures for May hit a record $1.7360 a gallon on worries that a national stockpile surplus could dwindle ahead of the summer driving season, while heating oil futures struck a peak of $1.6750 a gallon.

US gasoline futures for May were 3.49 cents higher at $1.6980 after earlier hitting a new record of $1.7130 a gallon.

Top energy derivatives trader Goldman Sachs said in a report on Thursday that oil markets might have entered a "super spike" period, which could drive crude oil prices toward $105 a barrel.

"That was a pretty big call by them and the market is just assessing where supply and demand really sits," said David de Garis, senior economist at ANZ Investment Bank in Melbourne.

Goldman Sachs raised its 2005 and 2006 price forecasts for US light crude to $50 and $55, respectively, from $41 and $40, citing resilient oil demand growth.

Prices have also rallied on concerns about the adequacy of US gasoline stocks ahead of the peak summer demand season.

Demand in the past month has been 2 per cent higher than the same time a year ago, despite record pump prices.

The US Energy Information Administration reported the fourth monthly decline in a row in oil stocks earlier this week.

Production problems over the past week have deepened concerns over whether refiners will be able meet gasoline demand this summer.- (Reuters)