JAKNEWS.COM---Oil prices briefly spiked to a new record above $126 a barrel Monday but later wobbled with some investors buying on worries of falling supply and others selling in response to a stronger dollar. 

Oil futures have set new records for six straight sessions, driven up by a weak U.S. dollar and growing concerns about declining crude production in Mexico, Russia and elsewhere, analysts say.
Goldman Sachs said in a report last week that crude prices could rise to $150 to $200 within two years. 

"What's really circulating now is the possibility that world oil production has peaked. There's an idea that we can't change supply but we can change demand, and the only way to do that is to rally
the market higher," said James Cordier, founder of OptionSellers.com, a Tampa, Florida, trading firm. 

Light, sweet crude for June delivery jumped to a new record of $126.40 a barrel on the New York Mercantile Exchange before falling back to $125.35, down 61 cents. The contract first rose above $126 on Friday. 

In London, June Brent crude futures fell 50 cents to $124.90 abarrel on the ICE Futures Exchange. 

A slightly stronger dollar gave investors reasons to sell crude Monday. A stronger greenback makes commodities such as oil less attractive to investors as a hedge against inflation, and it makes oil more expensive to investors overseas. 

Also pressuring oil slightly were concerns that a massive earthquake Monday in central China may temporarily slow demand. The 7.8-magnitude quake killed more than 7,600 people, toppled buildings and knocked out power lines.
 

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