Oil hit a record near $140 a barrel on Monday on weakness in the U.S. dollar and an emergency shutdown of a North Sea oil production platform that stirred supply worries.
The rally came despite expectations top world oil producer Saudi Arabia will soon boost output to its highest rate in decades amid calls from consumer countries like the United States for more output to ease an economic downturn.
“The week has started off with a bang, … apparently on participants’ lack of confidence in the Saudi’s ability to stem rising prices,” John Kilduff, senior vice president at MF Global wrote in a note.
U.S. light, sweet crude for July delivery was up $2.01 at $136.87 a barrel by 1630 GMT, off a record high of $139.89 set earlier in the session. London Brent crude was up $1.54 at $136.55.
Prices leapt as the dollar fell versus the euro, snapping a three-day winning streak, amid expectations the European Central Bank will hike interest rates to fight inflation… read this article
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