Crude futures surged sharply and broke the $140 level for the first time on Thursday as OPEC predicted oil prices to rise and Libya threatened to cut production.

Light, sweet crude for August delivery rose $5.09 to settle at a record $139.64  a barrel on the New York Mercantile Exchange. Prices continued to rise in the after hour electronic trading and hit $140.39 a barrel, surpassing the previous intraday trading record of $139.89 a barrel on June 16.

OPEC President Chakib Khelil said Thursday he believes oil prices could rise to between $150 a barrel and $170 a barrel this summer. Khelil's forecast caused a jump in prices.

Meanwhile, Libya national oil company said the country may curb output because the oil market is well supplied, according to news reports of France 24. A falling dollar also helped to push up the crude.

In London, Brent crude for August delivery rose $5.5 to settle at $139.83 a barrel on the ICE Futures Exchange after touching a record of $140.56 a barrel.