Oil rose to a new record at $127,82 last week after Goldman Sachs Group Inc. raised its oil price estimate for 2008 to $141 per barrel on supply concerns. China may increase fuel imports to generate power after the most powerful earthquake in 58 years killed more than 22,000 and damaged hydroelectric plants. Oil and commodities, including gold and platinum, also advanced on the falling dollar. PetroChina International Co., the trading unit of PetroChina Co., the country's biggest oil producer, has already purchased 2.9 million barrels of diesel for June. That's in addition to the 1.45 million barrels that China International United Petroleum & Chemicals Corp. bought for the month.
Prices fell from the Friday’s high after Saudi Arabia's oil minister, Ali al-Naimi, said his country will increase crude oil production by 300,000 barrels a day to 9.45 million barrels a day next month in response to customer requests. Saudi Arabia is the world's largest oil exporter and the most influential member of the Organization of Petroleum Exporting Countries.

Crude oil for June delivery rose to $126.29 a barrel, a record close. Futures touched $127.82 Friday, the highest since trading began in 1983. Prices are up 0.3% for the week and have more than doubled in the past year. Brent crude oil for July settlement rose to $124.99 a barrel, a record close. The contract touched an all-time high of $126.34 Friday.
Gold rose the most in 10 weeks as energy costs surged to a record and the dollar weakened, boosting the appeal of the precious metal as a hedge against inflation. Gold rose the most in 10 weeks as energy costs surged to a record and the dollar weakened, boosting the appeal of the precious metal as a hedge against inflation. Gold gained 31% last year as a 57% rise in oil prices contributed to the biggest increase in consumer costs in 17 years. Gold is still cheap relative to oil, which has doubled in the past year, analysts say. In 2007, gold moved in tandem with oil 92% of the time, according to Bloomberg data. In the past two months, gold has dropped 10%, while oil has climbed 14%.

Wall Street stocks slipped back on Friday but remained ahead for the week as resurgent oil prices boosted energy stocks but threatened to squeeze already weak consumer spending and financials lost ground. Energy stocks were in sharp focus again. Oil prices hit record highs after analysts at Goldman Sachs raised their oil price forecast for the second half of 2008 from $107 to $141 a barrel. ConocoPhillips shares rose 2.1%, Chevron added 1.4% and an index of energy stocks advanced 1.5%.

Financials also proved a weak spot, slumping 1.7% after Merrill Lynch analysts recommended selling regional banks and Nobel Prize winner Myron Scholes said the worst of the credit crisis may not be over. KeyCorp and Regions Financial led the sector lower, dropping 5.1% and 5.4%, respectively. The benchmark S&P 500 was up 2.1% over the week. The Dow Jones Industrial Average was 0.7% lower at 12,904.32 and the Nasdaq Composite slipped 0.8% to 2,512.90.
The technology sector was notably active last week. Hewlett-Packard, started the ball rolling on Tuesday when it tabled a $13.9bn deal to buy Electronic Data Systems. HP shares fell 5.2% to $46.60 over the week while EDS was among the weeks leading gainers, rising 29% to $24.33.
Earnings from retailers that were not as bad as feared and the stimulating prospects of government rebates played a part in that rally. Consumer discretionary stocks added 3.1% over the week. In the background, the saga surrounding Yahoo and its decision to reject a take-over offer from software giant Microsoft trundled on. Yahoo is now fighting efforts by billionaire activist investor Carl Icahn to replace its board and force the company back into negotiations with Microsoft. Over the week, Yahoo shares rose 7.3% and Microsoft shares added 2.2%.
Homebuilders were also in focus as dismal data and earnings from the sector continued to pour out. But stocks maintained their composure, taking solace from news of efforts in Congress to address the housing slump. Lennar and Centex added 7.1% and 7.2%, respectively, over the week.