Oil Breaks $125 a Barrel

And heads for $126 as weakening dollar opens investors' wallets
By Matt Cantor,  Newser User
Posted May 9, 2008 8:46 AM CDT
A Shell customer holds his wallet as he pumps gas at a Shell gas station in Menlo Park, Calif, Wednesday.   (AP Photo/Paul Sakuma)
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(Newser) – Oil climbed over $125 a barrel today, just ahead of the US driving season and propelled by investors jumping at a weaker dollar, the AP reports. Light, sweet crude for June rose to $125.98 on the New York Mercantile Exchange today, later dropping to $124.86 in Europe.

Prices could climb further following a Wall Street Journal report today that pointed to close ties between Venezuela and Colombian rebels. The information could prompt US sanctions against Venezuela, a major oil supplier, as a terrorist country.