U.S. light crude struck a record high of $117.40 a barrel. It was trading 27 cents higher at $116.96 by 1155 GMT. London Brent crude also struck its all time peak of $114.65. It was trading at $114.20, up by 28 cents.
The Organisation of the Petroleum Exporting Countries (OPEC) sees no need to raise oil production to counter high oil prices, the group's president Chakib Khelil said on Sunday.
His remark was followed by Iranian oil minister Gholamhossein Nozari, who said on Monday oil prices were not too high in real terms.
"OPEC's assertion that an increase in its oil production will not help to bring down prices should be put to the test," the Centre for Global Energy Studies said in a research note.
These remarks come amid concerns over North Sea production due to an impending strike by workers at a refinery in Scotland and supplies from Nigeria, Africa's largest oil exporter.
A fall in the dollar also contributed to oil's rally. A weak dollar has devalued assets in the U.S. currency, pushing investors to shift part of their money to commodities and oil.