Oil Hits $120.21 Per Barrel

A weakened U.S. dollar and rebel attacks in Nigeria raised oil supply worries, boosting prices to a new record high-- $120.21 (U.S.) per barrel.

Concerns over the supply of oil due to rebel attacks in Nigeria and a weakened US dollar are blamed for the current rise in oil prices. The crude futures contract of June rose as high as as $120.21 (U.S.) in morning trading. This is up almost $4 from Friday's close. The previous high of $119.93 (U.S.) was set last Monday. The main reason given for the price increase was a weekend attack by Nigerian rebels on an oil facility. However, oil traders are also stating that a U.S. dollar that was broadly weaker against other currencies played a role. One result was that the the Canadian dollar by more than half a cent to 98.68 cents (U.S.). The loonie often rises in value when commodities rise because Canada is a big net exporter of oil and other commodities. Oil was not the only commodity to rise as gold futures jumped more than $12 (U.S.) to $870.70 (U.S.) an ounce along with natural gas, copper and silver futures. In both Canada and the United States gasoline prices are at or near record highs in many areas. There are forecasts that the average price of regular gas will hit $1.30 to $1.40 a litre in Canada once the summer driving season begins.