For the first time ever, oil crossed 120$ marked.  Nigerian rebels have again attacked oil wells and pumps. This has raised concern in US and cause oil price to rise.  In Iraq too, Turkish army has started raiding Kudish insurgents. Both these factors have caused Oil price to increase.  For the last few weeks, many traders have moved into commodities trading as the US dollar has weakened.  These traders have started using Oil as a hedging tool.