WORLD oil prices surged overnight on lingering supply concerns...

WORLD oil prices surged overnight on lingering supply concerns tied to the start of the so-called US driving season and as geopolitical tensions continued to simmer.

Supply fears have been exacerbated by lower-than-average US gasoline supplies, but traders said US-Iran geopolitical tensions had also fuelled price gains.

New York's main oil futures contract, light sweet crude for delivery in July, closed up a hefty $US1.13 at $US66.21 per barrel.

In London, Brent North Sea crude for July delivery soared 1.33 dollars to settle at $US70.40 per barrel.