Oil soars on dollar, Energy Department report

Wednesday June 11, 4:02 pm ET
By John Wilen, AP Business Writer Oil soars as high as $138 a barrel as dollar falls and Energy Department reports supply drop NEW YORK (AP) -- Oil prices regained their stunning upward momentum Wednesday, rising as crude's biggest drivers -- a weak dollar and supply concerns -- brought buyers back in force. At the pump, gas prices rose to a new record over $4.05 a gallon.

Oil futures that were falling a week ago on concerns about declining gasoline consumption have dramatically reversed course and appear poised to set new records above $140 a barrel. While the market remains concerned about the effect of high prices on demand, several weeks of falling oil inventories and the dollar's inability to make headway against the euro have combined to turn market sentiment decidedly bullish.