Oil hits record over $100 on OPEC supply concerns

By Matthew Robinson

NEW YORK (Reuters) - Oil surged nearly 5 percent on Tuesday to hit a record over $100 a barrel on expectations OPEC will not hike output to ease high prices next month despite the economic woes of top consumer the United States.

U.S. crude settled up $4.51 at $100.01 a barrel after hitting $100.10 a barrel, a penny higher than the previous high struck on January 3. London Brent crude settled up $3.65 at $98.56 a barrel.

News Nigerian oil delta rebel leader Henry Okah had died raised worries about supplies from the OPEC country, but a spokesman for the government later said he was alive and in custody.

"Certainly OPEC is one of the supportive factors in the market as it has said it will not boost output at its meeting next month," said Eric Wittenauer, analyst at AG Edwards.

"News that Nigerian rebels said their leader Henry Okah was shot dead helped give traders a reason for bidding the market up in the afternoon."

Worries about the economic health of the United States pushed oil off its record peak, but signs that OPEC will hold or even cut output when it meets on March 5 sent prices back to triple digits.

"OPEC should maintain production or cut production," said Venezuela Oil Minister Rafael Ramirez, echoing comments made by OPEC President Chakib Khelil on Monday.

Other cartel officials said it would be hard to justify a reduction in supplies at current price levels, despite expectations demand will dip seasonally as the Northern Hemisphere winter comes to an end.