The June contract for light sweet crude rose $US1.48 closing at $US75.17 a barrel after peaking at an all-time trading high of $75.35.
Crude prices are more than 40 percent higher than a year ago.
Analysts say oil prices are likely to climb even higher in the weeks ahead with fears the United States might launch strikes at uranium facilities in Iran.
Iran is the world's fourth-biggest crude producer.
Washington accuses Iran, which exports some 2.7 million barrels of crude per day, of working secretly to build nuclear weapons.
Iran denies the charge and says its program is strictly for producing nuclear energy.
Rebel disruptions of oil production in Nigeria, Africa's biggest crude producer, also pose a risk to supply.
The situation in Nigeria is pushing up prices, as nearly one quarter of the country's high-quality crude is shut in due to tensions with militants, who want more control over how the country's oil wealth is dispensed.
The militants, who operate in an oil rich but impoverished area of the country, have reportedly set a deadline of April 25 before they renew attacks on government and oil facilities in the country.
Analysts are also concerned about shortages in US petrol supplies.
"Nothing's changed: the fundamental situation is tight and gasoline supply in the US is problematic," said Barclays Capital analyst Kevin Norrish.
The fall in supplies comes ahead of the US summer driving season, beginning in May, when American drivers take to the roads on holiday, pushing up demand for petrol.
"You put all these headlines together, you see the situation is getting charged up and getting out of control," Oppenheimer & Co. oil analyst Fadel Gheit told the Associated Press.
G7 concerns
The G7 finance ministers of Britain, Canada, France, Germany, Italy, Japan and the United States have called for greater investment in oil consuming and producing countries, and for more conservation and energy efficiency.
Even though the world economy is now in good shape," risks remain from oil market developments, global imbalances and growing protectionism," the finance officials from the Group of Seven countries said after a closed-door meeting.
They issued their joint statement before heading into dinner talks with China and crude producers Russia, Saudi Arabia and the United Arab Emirates.
Policymakers encouraged countries to examine ways to curb the world's appetite for energy and boost exploration and production.
"We urge investment in exploration, production, energy infrastructure and refinery capacity," the finance officials said.
"We remain committed to greater energy efficiency, conservation and diversification, which will improve the balance between supply and demand."