Crude oil prices jumped more than US$5 this morning (NZ time) to within sight of the record after a report showed stockpiles in the United States fell sharply for the fourth week in a row, intensifying worries of a worsening global crunch.
Weakness in the US dollar andsupply problems in Opec member Nigeria encouraged the rally, dealers said.
"The big crude draw is obviously bullish, but more importantly for the oil markets, the dollar is falling and that could send us back to near US$140 a barrel," said Mark Waggoner, president of Excel Futures in Huntington Beach, California.
US crude oil prices rose US$5.07 to settle at US$136.38 a barrel, within reach of last week's record near US$140. London crude rose US$4.00 to US$135.02 a barrel.
Oil prices have risen nearly seven-fold since 2002 amid rising demand from China and other developing countries, pressuring major consumers like the United States already hobbled by a housing slowdown and credit crunch.
