LONDON - Oil prices rocketed to historic heights this week, hitting 126 dollars per barrel, as traders focused on concerns about supply disruptions while the dollar won back some ground. OIL: Prices soared to fresh records each day this week on the back of speculative demand ignited by worries about tight supplies. On Friday, the price of New York oil jumped to a historic 126.20 dollars and London's Brent crude hit an all-time pinnacle of 125.90 dollars. Oil prices have soared 25 percent since the start of 2008 and doubled since the same stage last year when they stood at about 62 dollars. Meanwhile, Goldman Sachs forecast this week that prices could strike 200 dollars within two years. The US investment bank famously and correctly predicted three years ago that oil would break through 100 dollars which it did in January. Oil has since leapt above 110 and 120 dollars as the market was also driven by the weak dollar and solid demand from Asian powerhouse economies China and India. A weak dollar makes commodities priced in the US currency cheaper for foreign buyers, thus raising demand. The market has also been buoyed by ongoing violence in Nigeria, Africa's largest crude oil producer, where attacks have cut production by about a quarter over the past two years. Prices raced higher despite news on Wednesday that US energy stockpiles had risen by a bigger than expected amount last week. Sucden analyst Michael Davies said that there was "keen interest in the oil market by the (investment) funds, which are currently being attracted by oil's rapid price appreciation this year. "This probably explains the move higher over the last few days," he added. Prices continued higher on Thursday after the OPEC cartel insisted the market was well-supplied and driven by speculators rather than by underlying demand. OPEC Secretary General Abdalla Salem El-Badri said there was no shortage of crude, brushing aside US calls for higher output to dampen runaway prices. "There is clearly no shortage of oil in the market," El-Badri said in a statement. The 13-member Organisation of the Petroleum Exporting Countries (OPEC) produces about 40 percent of the world's oil, with current output at about 32 million barrels per day. By Friday, New York's main oil futures contract, light sweet crude for delivery in June, had jumped to 124.80 dollars from 113.82 dollars a week earlier. Brent North Sea crude for June was at 124.39 dollars after 112.11 dollars. PRECIOUS METALS: Gold prices rallied and there were also gains for silver, platinum and palladium. "With supply disruption continuing to push oil to higher levels, gold looks set to benefit from further inflation-related hedging in the short-term, while strong physical demand helps provide a strong base," said James Moore at Platinum jumped owing to supply disruptions. "The South African power shortages that have depressed platinum production continue to underpin prices," said analysts at Barclays Capital. On the London Bullion Market, gold climbed to 876 dollars per ounce at Friday's late fixing from 853.50 dollars a week earlier. Silver rose to 16.97 dollars per ounce from 16.19 dollars. On the London Platinum and Palladium Market, platinum soared to 2,079 dollars per ounce at the late fixing on Friday from 1,855 dollars a week earlier. Palladium advanced to 437 dollars per ounce from 412 dollars. BASE METALS: Base metals prices mostly rose. By Friday, copper for delivery in three months rose to 8,300 dollars per tonne on the LME from 8,200 dollars a week earlier. Three-month aluminium gained to 2,875 dollars per tonne from 2,870 dollars. Three-month nickel fell to 27,450 dollars per tonne from 27,700 dollars. Three-month lead dropped to 2,320 dollars per tonne from 2,535 dollars. Three-month zinc climbed to 2,218 dollars per tonne from 2,180 dollars. Three-month tin rallied to 24,475 dollars per tonne from 22,802 dollars. COCOA: Cocoa prices rebounded on rumours of tight supplies in leading producer Ivory Coast. By Friday on LIFFE, London's futures exchange, the price of cocoa for July delivery increased to 1,492 pounds per tonne from 1,386 pounds a week earlier. On the New York Board of Trade (NYBOT), the July cocoa contract increased to 2,736 dollars per tonne from 2,130 dollars. COFFEE: Coffee prices rallied after falling in recent weeks. Coffee prices are "supported by harmful dry weather conditions in Brazil's coffee growing regions, which are likely to continue until the middle of the month," said analysts at Barclays Capital. By Friday on LIFFE, Robusta for July delivery increased to 2,243 dollars per tonne from 2,130 dollars a week earlier. On the NYBOT, Arabica for July delivery rallied to 138 US cents per pound from 129 cents. SUGAR: Sugar prices jumped, taking their lead from record-high oil prices . Sugar is used in the production of ethanol, a more environmentally friendly and cheaper alternative to gasoline (petrol) refined from crude oil. By Friday on LIFFE, the price per tonne of white sugar for August delivery climbed to 337 pounds from 327 pounds the previous week. On NYBOT, the price of unrefined sugar for July delivery advanced to 11.76 US cents per pound from 11.37 cents. GRAINS AND SOYA: Maize reached a historic peak due to wet weather in key producer the United States. Maize, or corn, hit an all-time high of 6.37 dollars a bushel on Friday. "Soggy weather continues to delay US plantings," said Allendale analyst Joseph Victor. By Friday on the Chicago Board of Trade, maize for July delivery jumped to 6.31 dollars per bushel from 6.13 dollars a week earlier. July-dated soyabean meal used in animal feed increased to 13.10 dollars from 13.04 dollars. Wheat for July delivery climbed to 8.14 dollars per bushel from 8.09 dollars. RUBBER: Rubber futures were higher, backed by strong gains for other commodities, especially crude oil. They said a weaker Malaysian ringgit also made the commodity more attractive, with the country a major producer. "Rubber traders were closely tracking the oil market as higher oil prices supported a change in demand to natural rubber from synthetic rubber," one dealer said. Crude oil is used to make synthetic rubber. On Friday, the Malaysian Rubber Board's benchmark SMR20 increased to 278.35 US cents per kilo from 272.20 a week earlier.