Oil strikes new record near $120 on supply fears

PERTH (Reuters) - Oil struck a record high at $119.93 a barrel on Monday, extending the previous session's rally, as a strike closed a major British oil pipeline and as fresh violence in Nigeria reignited supply fears.

Simmering geopolitical tensions between the United States and Iran also helped boost oil prices.

U.S. light crude for June delivery rose 81 cents to $119.33 by 2249 GMT, after striking a lifetime high of $119.93 a barrel at the start of Globex electronic trade.

U.S. oil settled $2.46 higher at $118.52 a barrel on Friday.

London Brent crude rose 66 cents to $117.

"Supply side concerns underpinned the oil price," David Moore, a commodity strategist at the Commonwealth Bank of Australia, said in a note to clients.

"Oil supplies from Nigeria have been disrupted by militant attacks and a strike by some oil workers. A strike at the Grangemouth refinery in Scotland has caused significant disruption to supplies from the North Sea," he said.

A pipeline carrying nearly half of Britain's oil was closed on Sunday as a strike over pensions began at the neighboring Grangemouth refinery in Scotland, operator BP (BP.L: Quote, Profile, Research, Stock Buzz) said.

The refinery, owned by international chemical company Ineos, produces a tenth of Britain's petrol and diesel but also supplies vital steam to BP's Kinneil plant that starts to process the crude oil coming ashore from 70 North Sea fields.