Oil prices hit $138 a barrel

A faltering dollar, Mideast tensions and concerns over supply disruptions out of Nigeria propelled oil prices above US$138 a barrel Tuesday, less than US$2 away from crude's trading record.The crude futures market was also showing disappointment over Saudi Arabia's modest production increase announced Sunday at a meeting of oil producing and consuming nations. The kingdom said it would pump more crude oil this year if the market needs it, but its pledge fell far short of U.S. hopes for a larger increase.Light, sweet crude for August delivery rose US$1.38 to US$138.10a barrel by noon in European electronic trading on the New York Mercantile Exchange. The contract rose US$1.38 to settle atUS$136.74 a barrel Monday.