Oil prices have crept over the $123-a-barrel mark. The rises in price come as attacks on Libyan oil fields are raising concerns about security of supply.
Fears of unrest in the Middle East spreading as the world’s economies attempt to increase demand through growth.
Brent crude rose to £124.17 while light crude rose to $110.82.
The International Monetary Fund warned that an imbalance in supply and demand of oil is likely to push prices even higher. IMF economists have said in their World Economic Outlook report, that governments should be looking to back sustainable alternative sources of energy.
Production in Libya, the 17th largest oil producer in the world, has been affected by violence between the government and rebel forces.