Oil prices soared to a record high close to 106 dollars a barrel on Thursday as traders were spooked by a small explosion in New York, a surprise fall in US crude stockpiles and the weak US currency.

New York's main oil contract, light sweet crude for delivery in April hit 105.97 dollars per barrel, surging above 105 dollars after topping the previous record of 104.95 dollars set on Wednesday.

Brent North Sea crude for April jumped to 102.95 dollars, beating its previous all-time peak of 102.29 dollars set on Monday.