Oil surges to $138.06 a barrel on NY Mercantile Exchnage.

Oil surged on June 26 following reports that Libya may cut production and an OPEC official said crude could hit $170 a barrel this summer. In an interview on France 24 television the president of OPEC said that oil prices could rise to between $150 and $170 a barrel during the summer. He added that he didn’t think oil would hit $200 a barrel.

Light, sweet crude for August delivery increased $3.51 to $138.06 a barrel in electronic trading on the New York Mercantile Exchange. The price climbed as high as $138.95, a $4.40 gain and within $1 of the all-time intraday high of $139.89.