Oil hits $122 a barrel

NEW YORK (AP) -- Oil futures blasted to a new record of $122 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.

A new Goldman Sachs prediction that oil prices could rise to $150 to $200 within two years seemed to motivate much of Tuesday's buying, although a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed, analysts say.

Light, sweet crude for June delivery jumped to a new record of $122 a barrel before retreating slightly to trade up $1.92 at $121.89 on the New York Mercantile Exchange.