Singapore's Tapis shot up $US6.88 per barrel to close at $135.67 while New York's West Texas Intermediate hit an all-time high of $139.12 before settling at $138.54.
"OPEC need to open the production lines to a greater extent, increase global oil supply," Mr Rudd told Network Ten.
"They've done it a bit in response to representations from (US) President (George W) Bush.
"The G8 (Group of Eight) provides an opportunity to apply the blowtorch to the OPEC organisation and it's time that happened."
Mr Rudd's call comes as the G8 nations - Canada, France, Germany, Italy, Japan, Russia, Britain and the United States - met with China, India and South Korea amid deepening concern about record oil prices.
However, Reuters quoted investment bank Lehman Brothers as saying in a report that oil prices could fall sharply toward year-end or early next year as evidence of eroding demand in Asian economies materialises.
Lehman analysts believe oil prices in the high double-digits would curb demand growth enough to allow supplies to catch up, but it may take months for demand destruction to appear in data.
"If prices continue to rise from here, we fear that economic tipping points could be reached in Asia and the market will find itself with more demand destruction than it cares for," analysts Adam Robinson and Michael Waldron said in last week's report.
"The problem, however, is that barring an economic meltdown, the data we need to verify our oil market argument is unlikely to become available until well after this summer."
