Oil tops $125 a barrel on supply worries

July 28, 2008 6:54:57 AM PDT
Oil prices are rising today, after Iran's president hinted his country had stepped up its nuclear activities.By midday in Europe, light, sweet crude for September delivery rose $1.78 to $125.04 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, the price was $123.26 a barrel -- which had been oil's lowest point in weeks.

Still, concerns about the faltering U.S. economy and demand for crude are weighing down futures.

Meanwhile, a national survey shows average gas prices in the U.S. have dropped a bit below the $4 mark -- and are at their lowest level since mid-May. The survey also notes the average U.S. price for gas is $1.11 higher than a year ago.