Oil surpasses $126 per barrel ahead of US driving season

New York: US crude futures jumped more than $2 to a record high above $126 on Friday, fueled by fund buying and surging distillate prices on both sides of the Atlantic, according to traders.

The prices surged on the eve of the US driving season as a weakening dollar drove investors to snap up commodities.

Light, sweet crude for June delivery rose $2.51 to a new record of $126.20 a barrel in electronic trading on the New York Mercantile Exchange by the afternoon in Europe.

On Thursday, the contract rose to a record close of $123.69 a barrel.

In London, Brent crude contracts also hit record highs before slipping and traded up $2.98 on the day at $125.82 a barrel on the ICE Futures exchange.

Earlier on Friday, Brent had reached $125.90 before falling back.