Oil prices hit new high despite rising US inventories, stronger dollar
Updated: 2008-05-08 10:27
NEW YORK - Oil futures surged to break US$123 a barrel Wednesday, despite bearish data on US crude inventories and stronger dollar against major currencies.
 Gas prices climb over four dollars a gallon at a gas station in Miami Beach, Florida April 23, 2008. [Agencies]
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Light, sweet crude for June delivery hit a all-time peak of 123.80 dollars a barrel on the New York Mercantile Exchange before falling slightly to settle at 123.53 dollars, trading up 1.69 dollars.
The US Energy Department's weekly report shows that oil supplies increased 5.65 million barrels to 325.6 million barrels last week, much more than analysts previously predicted. Gasoline supplies also rose against analysts' forecast of decline.
The market, however, seemed to focus more on the supply falls of distillate fuels, which include diesel and heating oil, revealed in the report. The market did not react to a stronger dollar either, which was higher against Euro.
The rally of oil prices fresh highs came a day after investment bank Goldman Sachs predicted that oil will reach 200 dollars in two years. And concerns on supplies in world's major oil exporters continued to linger.
In London, Brent crude futures for June delivery also set a new record of 122.32 dollars a barrel, 4.33 dollars up.
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