Wednesday, May 21, 2008

OIL CROSSES $130 A BARREL

Oil prices rose above $130 a barrel for the first time Wednesday as supply concerns mounted and the dollar weakened.

U.S. crude for July delivery traded as high as $130.25 a barrel in electronic trading. The July contract closed at $128.98 in the floor session.

Tuesday's performance was the 10th time in the last 12 sessions that crude prices have hit trading or closing records, if not both.

Oil futures are now selling for about twice what they were just a year ago. Prices have been propelled by a number of factors, including worries about insufficient supply, soaring global demand and a sliding dollar that has made oil cheaper for some buyers overseas. Speculative buying has also helped push prices higher, analysts say.

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