Oil surges $11 to record $138

Crude skyrockets on a sliding dollar, geopolitics and a Wall Street report predicting $150-a-barrel oil.

By Catherine Clifford and Ben Rooney, CNNMoney.com staff writers
Last Updated: June 6, 2008: 4:41 PM EDT

NEW YORK (CNNMoney.com) -- Oil prices shot up nearly $11 a barrel and settled Friday at a record $138.54 on geopolitical jitters, a dollar decline and a forecast that oil would hit $150 by July 4.

Friday's spike in the July contract for light crude on the New York Mercantile Exchange marks the largest singe-day increase in oil prices on record. The contract hit an intraday record of $139.12, breaking the previous trading record of $135.09.