Oil Slides Back from New Recordadmin
Before pulling back, oil prices spiked to a new record above $126 a barrel, as some investors bought on worries of falling supply and others sold on a stronger dollar.
Light, sweet crude for June delivery jumped to a new record of $126.40 a barrel on the New York Mercantile Exchange before falling back to settle at $124.23, down $1.73.
Oil futures set new records for six straight sessions, driven up by a weak U.S. dollar and growing concerns about declining crude production in Mexico, Russia and elsewhere, analysts say. Goldman Sachs said in a report last week that crude prices could rise to $150 to $200 within two years.
The average national price of a gallon of regular gas rose 1.1 cents overnight to a record $3.718 a gallon according to a survey of stations by AAA and the Oil Price Information Service. June gasoline futures fell 3.7 cents to settle at $3.1642 a gallon.
Heating oil for June delivery lost 7.62 cents to settle at $3.6070 on the Nymex, and natural gas futures fell 23.6 cents to settle at $11.301 per 1,000 cubic feet.