The good news? Brazil has found 33 billion barrels of oil: From the BBC:

Brazil has discovered what could be the third biggest oil reserve in the world, according to the head of the country's National Petroleum Agency.

The deep-sea find by state-run oil firm Petrobras could yield 33 billion barrels in reserves.

Further tests are required to assess the scale of the find, off the coast of Rio de Janeiro, but analysts say it could have significant implications.

The bad news? Russia's oil production may be slipping. From the BBC:

The future supply of Russian oil is threatened by a likely decline in production levels, one of the country's top oil executives has warned.

Lukoil's Leonid Fedun said $1 trillion would have to be spent on developing new reserves if current output levels were to be maintained.

Recent figures show Russian output fell 1% in the first quarter of 2008.

The possibility of less oil from one of the world's key suppliers will add more pressure to prices now at record highs.

All this led to a new record. From CTV.ca:

Oil prices set another record Tuesday, at one point trading well above US$114 a barrel.

Light, sweet crude went up to $114.08 a barrel after regular trading ended, before settling down for the day at $113.79. That's up $2.03 from Monday's record close of $111.76.

The previous intraday trading record of US$112.21 was set last week on the New York Mercantile Exchange.

"I think we're in for a new era in oil where higher prices are here to stay," said John Stephenson, an oil industry analyst with First Asset Funds. "We've seen 35 years go by without a major discovery in the oil patch anywhere in the globe."

Stephenson seems to be somewhat out of date. A 33-billion-barrel discovery is not trivial. But that was announced late Monday, and yet oil still surged on Tuesday.