oil

Oil surges to 3rd straight record high
Crude prices hit a new record - reaching as high as $115.07 - after a government report shows that stockpiles fell more than expected last week.


NEW YORK (CNNMoney.com) -- Oil prices settled at a record high for the third day in a row on Wednesday. Prices spiked to a record $115.07 a barrel in midday trading, after a government report showed an unexpected crude supply drop.

U.S. light sweet crude for May delivery settled at $114.93 a barrel on the New York Mercantile Exchange.

In the short term, momentum could push crude prices higher still, according to Brian Hicks, co-manager of the Global Resources Fund at U.S. Global Investors.

However, Hicks says, "at some point, seasonal factors will come into play and we will see a pullback in the second quarter." There is lower demand for crude in the second quarter because consumers are in between the winter heating months and the summer driving months.

Crude began the year at just under $96 a barrel, which means the price has soared by nearly 20% already this year.