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Crude oil reaches $122 a barrel on fears of strained supplies

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06 May 2008 @ 02:29 pm EST
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The dollar has declined as the U.S. Federal Reserve has cut interest rates since September to spur economic growth.

Brent crude futures for delivery in three months rose $4.97 or 4.33 percent to $119.74 a barrel on the London ICE Futures Exchange today.

A report on U.S. crude inventories is due on Wednesday and is expected to show crude supplies rose 1.8 million barrels, distillate inventories rose 1.1 million barrels and gasoline stocks dropped 100,000 barrel.

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