Oil futures hit a new record high of over 122 U.S. dollars a barrel Tuesday due to predictions of future price hike and the continuing concerns on supply shortage.

Light, sweet crude oil for June delivery surged to a all-time record high of 122.73 dollars a barrel, before falling back to settle at 121.84 dollars with 1.87 dollars up on the New York Mercantile Exchange.

The Supply shortages will probably send oil price to between 150 dollars and 200 dollars a barrel within next six months to two years, said a report released by Goldman Sachs on Monday. The prediction seemed to have motivated most of Tuesday's buying of oil.

Concerns on supply shortfall in major oil exporters like Nigeria, Iraq, Mexico and Russia also contributed to the lift of crude futures.

The U.S. Energy Department raised its forecasts for oil and gas. But higher energy prices will cut demand more than previously thought, it warned.

In London, Brent North Sea crude for June delivery rose 2.34 to settle at 117.99 dollars.