Oil jumps above $109 a barrel [View All]

[marmar]

NEW YORK (AP) -- Oil rose Wednesday as the dollar declined against other major currencies.

Benchmark West Texas Intermediate gained 40 cents at $108.74 per barrel in midday trading on the New York Mercantile Exchange. It jumped as high as $109.15 earlier in the day -- the highest since September 2008.

Prices have climbed for several weeks as the Libyan rebellion shut down most of that OPEC country's exports, and energy traders worried about future supplies from the region. Libya produced nearly 2 percent of the world's oil, and an extended shutdown could threaten the production capacity of other OPEC members that are covering some of the shortage.

Gasoline pump prices have followed oil higher, climbing to a national average of more than $3.71 for a gallon of regular on Wednesday, according to AAA, Wright Express and Oil Price Information Service. Pump prices have increased nearly 64 cents per gallon since the beginning of the year. They're now more than $4 per gallon in California, Hawaii and Alaska. .............(more)

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