Prices have gone up 16% in the past month as Iran's nuclear row has got worse and oil supplies from Nigeria have been disrupted.
Brent crude oil also hit a new record of as much as $72.20 a barrel in London but by early afternoon, US light sweet crude was trading at $70.75 while Brent crude had eased slightly to $71.91.
Analysts say that prices would continue to go up as long as Iran's dispute with the international community over its nuclear intentions was unsettled.
"We have broken new ground today," stated Victor Shum, an energy analyst with Singapore-based Purvin & Getz.
Militia violence in Nigeria has also made prices rise over recent weeks and, over the past month, prices have gained more than $10, or 16%.
The global demand for oil remains extremely strong, especially in the run-up to the American driving season, while available supplies remain tightly controlled.
Countries in the Opec oil producers' cartel have admitted there isn't much they can do to prevent the rise in prices.
