OIL prices pulled back from yesterday's record highs amid early indications that Venezuela's President Hugo Chavez had survived a key referendum.

The cost of a barrel of crude peaked at $46.91 in New York - the highest level in 21 years - before falling back to $46.21.

Concerns that Mr Chavez might not survive the vote in the world's fifth-largest oil-producing country helped fuel the record price seen earlier.

Disruption to exports from Iraq, which were hit by an uprising in the south of the country, had also added pressure.

Two weeks of continuous fighting have put supplies at risk as militants threaten more attacks on the vital pipelines.

Bruce Evers, oil analyst at Investec Securities, said: "With demand remaining as tight as it is and supplies as tight as they are, everything points towards the possibility of higher prices."

A number of rallies have been pushing the cost of crude to new records on an almost daily basis.

Fears of terrorist attacks, disruptions to Iraqi crude exports and financial troubles at Russia's largest oil producer, Yukos, have all made the situation worse.

Higher prices have brought further anxiety for motorists, who have been warned to expect another 1p on the price of a litre of petrol this month. Air passengers have also been hit as airlines increase their fuel duties in response.