(Reuters) Oil surged to a new record high on Monday of nearly $140 a barrel, propelled by weakness in the U.S. dollar which offset the bearish impact of plans by Saudi Arabia to boost output.
U.S. light, sweet crude for July delivery was up $3.74 at $138.60 a barrel by 1317 GMT, after falling as much as $1.40 a barrel, or about 1 percent, earlier in the session.
U.S. crude set a record high of $139.89 a barrel.
Prices leapt as the dollar fell after publication of data from the New York Federal Reserve that showed manufacturing in the state of New York contracted in June for the fourth time in five months.
“Prices rose sharply in three minutes. U.S. manufacturing data was weak, so it is pressuring the dollar down,” said Mike Wittner, energy analyst at Societe General.
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2 Responses
$200 a barrel anyone? How about costing the average car owner $1,000 to fill up their gas tank? The sky is the limit for those greedy, spoiled, Bedouin billionaires called the Saudis.
We in America threw tea in the harbor for less. Its about time we rose up and said enough. Bush and his chronies have done it to us for the last time……rise up and say enough…….