It appears our turbulent economic situation has just spilled over into the oil market. The dollar, obviously driven down by our current economic mess, is losing value fast. So people are trading their dollars in for oil and gold. As a result, crude closed around $120 a barrel today.

According to Bloomberg, crude oil prices rose near record levels again because the National Oceanic and Atmospheric Administration warned of a more severe hurricane season than originally forecast.

Crude oil prices rised past USD $135 a barrel for the first time on Wednesday, continuing its astonishing rise following unexpected drops in US crude and gasoline stocks in a tight market, dealers said.

The price of oil per barrel has risen to a new all time high. During trading in Asia and in London, England the price of NYMEX Crude oil futures, per barrel, was at US$124.34 (22:07 eastern time) setting a new record high. Brent Crude oil also hit a new record high of US$122.84, but soon retreated to $121.79.

Crude oil prices briefly surged Tuesday to a record of $109 a barrel before easing back down, and the International Energy Agency warns that higher prices are here to stay.

Venezuela's state-run oil company has announced it is cutting crude sales to ExxonMobil, the largest U.S. oil company, because of Exxon's efforts to seize Venezuelan assets.

Sinopec Corp, Asia's largest refiner, processed 6.3 percent more crude oil last year, after the government called for local plants to boost production.

Oil has zoomed to an all-time high above $85, propelled by robust demand from booming commodity markets and fresh geopolitical worries.

Oil prices dropped Thursday as traders took profits after U.S. crude stocks fell and drove oil futures in the previous session above US$80 a barrel for the first time ever.

Rosneft has bought crude oil to increase processing at its refineries.

World oil prices eased on Monday (August 13)on concerns about U.S demand in the face of sub-prime mortgage risks.

Chavez: Be ready to the $100 crude price