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Update: Oil surges near $134 on supply woes, weak dollar



Oil prices surged nearly $5 to

a record near $134 a barrel after a US
government report showed a surprise drop in crude stockpiles,
reinvigorating fears of a supply crunch.

The gains bring oil up more than 33 per cent so far this
year in a rally that has raised alarm bells in consumer
countries like the US, already hard-hit by a housing
slump and credit crisis.

Weakness in the US dollar encouraged today’s buying
spree by bolstering the purchasing power of buyers holding
other currencies, dealers said.

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