Crude oil price hits new high

THE cost of crude oil reached a new high today amid global supply concerns and a weakening dollar.

Light, sweet crude for June delivery reached $120.36 in electronic trading on the New York Mercantile Exchange. Prices first broke through the $120 mark yesterday before settling slightly lower, but they renewed their push today.

Threats to supply have emerged from Iraq and Nigeria, and a weaker dollar against the euro and yen has tempted investors back to commodities such as oil as a hedge against inflation.

Investors have been worrying about the latest clashes in Northern Iraq, where Turkish forces have renewed cross-border raids against Kurdish insurgents.

And in Nigeria, a major supplier to the US, rebels have attacked oil wells and pipelines feeding an export terminal.