Mumbai: US crude futures hit an all-time high of $130.47 a barrel today, supported by a weak US dollar and supply worries, even as the House of Representatives passed a bill authorising the government to sue OPEC in US courts over alleged price fixing.

The bill was passed in the Democrat-led house yesterday by 324 to 84 votes. President George Bush has, however, vowed to veto the bill

The bill would allow the US justice department to subject OPEC member nations to the same anti-trust laws as US firms face.

US sweet light crude futures for July delivery rose to a record $130.47 before easing to $129.71 by 1328 GMT, up 73 cents. London Brent gained $1.16 at $129.

The June contract that expired on Tuesday settled at at record high of $129.07 a barrel, up $2.02 from the previous closing price of $127.05 a barrel.

The Organisation of Petroleum Exporting Countries (OPEC), which produces 40 per cent of the world's oil, comprises Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, Qatar, the United Arab Emirates and Venezuela.

Oil prices are heading to almost $150 a barrel despite an expected rise in US crude inventories – the fifth straight rise in as any weeks. Stocks of refined products were also forecast to have increased slightly.

The dollar also slid to a one-month low against a basket of currencies as the euro pushed higher by expectations of higher euro zone interest rates. That made dollar-denominated oil relatively cheap for holders of other currencies.

The Organisation of the Petroleum Exporting Countries (OPEC) has kept official policy unchanged, but its biggest producer Saudi Arabia has offered to raise production.

Market watchers expect OPEC's oil output in May to rise by 700,000 barrels per day compared with April.

Extra OPEC crude had little impact as the market has instead focused on short-term refinery problems.

Oil compnies plan to spend a record $100 billion this year on exploration and production as the supplies the companies tap from non-OPEC countries will only meet about 20 per cent of world demand gro