Energy Sector Roundup: Oil heading higher

Crude Continues to Climb

Oil rose again, as traders kept buying on the belief that prices will just keep setting new records.

Light, sweet crude for June delivery gained $2.17 to settle at $126.29 on the New York Mercantile Exchange. Crude shot up to $127.82 a barrel, a new record, earlier in the session.

The market showed little reaction to the Energy Department's announcement that it will cancel shipments into the Strategic Petroleum Reserve for six months beginning July 1.

Motorists are now paying more than ever for gasoline with the national average for a gallon of regular at nearly $3.79, according to AAA and the Oil Price Information Service.

Diesel prices also have risen to record levels, meaning that even Americans who don't drive will likely pay more for all sorts of goods because of higher shipping costs. A gallon of diesel now sells for $4.482.

In Nymex trading, gasoline futures jumped to a record $3.2438 a gallon before settling at $3.2235, up 5.77 cents. Heating oil futures rose 8.04 cents to settle at $3.7028 a gallon. Natural-gas futures fell 30.5 cents to settle at $11.094 per 1,000 cubic feet.

Goldman Raises Oil Price Forecast

Goldman Sachs commodities analysts raised their forecast for the average price of West Texas crude in the second half of 2008 by $34 to $141 a barrel.