Oil Hits Another Record High as Bulls in Charge

New York, NY, May 6, 2008--Oil futures rose to an all-time high near $121 a barrel today.

Light, sweet crude for June delivery rose to a record $120.93 a barrel in electronic trading on the New York Mercantile Exchange. The contract later fell back to $120.24 a barrel, up 27 cents from Monday's close.

Crude futures settled on Monday at $119.97 a barrel, up $3.65 from Friday's close.

The dollar also weakened against the euro on Monday, attracting investors to oil and other commodities viewed as hedges against inflation. Also, a falling dollar, spurred in part by recent interest rate cuts by the Federal Reserve, makes oil less expensive to investors overseas.

Threats to supply emerged in Iran and Nigeria over the weekend and from Iraq on Monday.

While demand for oil and gasoline has been soft in the U.S. because of the slowing economy, the Chinese and Indian economies are growing by double digits, increasing global demand for oil.