NEW YORK, June 16: Crude oil futures hit a record near $140 a barrel on Monday as investors shrugged off Saudi Arabia’s promise to boost production and instead focused on a weaker dollar.

Light, sweet crude for July delivery soared to a trading record of $139.89 before retreating to trade up $2.39 at $137.25 a barrel on the New York Mercantile Exchange.

Many investors buy commodities such as oil as a hedge against inflation when the dollar falls. Also, a weaker dollar makes oil less expensive to investors dealing in other currencies.

In afternoon European trading, the euro bought $1.5470, up from $1.5354 late Friday in New York.

Saudi Arabia told UN chief Ban Ki-moon over the weekend that it would boost output by 200,000 barrels a day, or by 2 per cent, from June to July. In May, the kingdom raised production by 300,000 barrels a day.—AP