Oil prices set a new record high today as production problems caused by Hurricane Ivan continued to weigh on the market.

The cost of a barrel of crude oil in New York broke through the previous high of 50.47 US dollars set last week to reach 50.60 US dollars.

Brent crude - found in the North Sea and traded on the International Petroleum Exchange in London - also rose above last week's record to stand at 46.82 US dollars.

Problems in the Gulf of Mexico due to the impact of Hurricane Ivan have continued to have an impact on oil production.

Analysts said the latest figures showed the amount of oil coming out of the Gulf of Mexico was still lower, even three weeks after the hurricane.

Anxiety over unrest in Nigeria and Iraq also contributed to the latest surge.

Richard Slape, oil analyst at Seymour Pierce, said the rise in prices was a continuation of recent events.

"Hurricane Ivan had a strong impact on prices," he said. "It affected imports into the US and took a lot of production down in the Gulf of Mexico."

Last week's surge was fuelled by factors including political unrest in Nigeria's oil producing region and continued instability in the Middle East.

Prices had dropped back after a truce between Nigerian oil rebels and the government, but Mr Slape said there was still concern that trouble could flare up.

He added: "Nigeria's always been pretty volatile and I guess it will continue to be so."

Motorists were warned last week that the price of petrol could rise by one or two pence a litre due to the surge in oil prices. Any increase is likely to take prices close to the 85p a litre levels seen at the time of the pump protests in 2000.

But despite the highest crude prices in 21 years, analysts said the cost of oil needed to rise much more before it had a major impact on the global economy.