Crude oil prices rose above a record US$99 per barrel yesterday as worries about inadequate winter supplies in the Northern Hemisphere and news of refinery problems stoked bullish sentiment.

The declining US dollar and speculation that the United States Federal Reserve will again cut interest rates also boosted prices.

Some investors put their money into oil contracts, betting that gains in their price will offset dollar weakness.

"The market is now really looking at US$100 a barrel as the next target to hit," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

"The fact that we are having this surge in pricing in this short trading week underscores the strength of this bull run for oil."

Light, sweet crude for January delivery rose as high as US$99.29 a barrel in electronic trading after the New York Mercantile Ex-change closed, breaking the previous intraday record of US$98.62 set November 7.

The contract was trading at $98.52 a barrel, up 49 cents on Tuesday's close, in early Nymex trading. Later in the day, energy futures balked after the government reported that supplies at a key oil terminal in the Midwest rose for the first time in weeks.