New York (AP) Oil futures are hitting a new milestone near $140 a barrel, a dramatic surge analysts attributed to the weakening dollar.
Light, sweet crude for July delivery rose to a trading record of $139.89 a barrel today, but retreated slightly to trade up $4 at $138.86 a barrel on the New York Mercantile Exchange.
The dollar fell on a weak report on New York state manufacturing activity, analysts said. Any investors buy commodities such as oil as a hedge against inflation when the dollar falls. Also, a weaker dollar makes oil less expensive to investors dealing in other
Many analysts believe the dollar's protracted decline is a major factor behind oil's doubling in price over the past year.