Oil settles above $129 for first time

By ADAM SCHRECK, AP Business Writer
Tue May 20, 5:12 PM ET

Just in time for the start of the summer driving season: Oil near $130 a barrel and gas getting closer to an average of $4 a gallon.

Crude prices spiked to yet another trading high Tuesday as supply concerns mounted. At filling stations across the country, the national average price for a gallon of regular gasoline touched $3.80 for the first time, having followed oil's spectacular rise.

The June contract for light, sweet crude traded as high as $129.60 on the New York Mercantile Exchange before settling at $129.07, up $2.02 from Monday's record high. The expiration of that contract, which ended with the close of Tuesday's trading, created additional volatility as traders scrambled to lock in positions.