NEW YORK, United States – Oil rose above US$108 per barrel yesterday, as the dollar weakened against other major currencies.

Benchmark crude for May delivery gained US$1.03 to settle at US$108.15 per barrel on the New York Mercantile Exchange. Tuesday is the last trading day for that contract. Oil for June delivery rose 59 cents to settle at US$108.28 per barrel.

Oil moved higher in afternoon trading as the dollar declined. Crude, which is priced in dollars, tends to rise as the dollar falls and makes oil barrels cheaper for investors holding foreign currency.

The sharp rise could be pressuring Americans to drive less and buy less gas, though economists say it’s too early to conclude that’s happening. People usually curb their driving as a last resort, according to retail experts. So a drop in gasoline consumption is usually accompanied by a decline in other kinds of spending.

US motorists may not see much relief anytime soon, however. Gasoline prices typically rise in the summer as refineries are required to produce more expensive summer blends of gasoline to help reduce harmful emissions. The Energy Information Administration said that retail prices could peak at US$3.91 per gallon during the summer driving season. OPIS says the national average could reach US$4 per gallon (US$1.05 a litre) this year.