NEW YORK (CNNMoney.com) -- Oil prices set a new record high Wednesday, jumping over $4 on an expected interest rate cut from the Federal Reserve and dwindling supplies in the United States. 
U.S. light crude for December delivery jumped $4.15 to settle at a new record of $94.53 a barrel on the New York Mercantile Exchange, topping Monday's record close of $93.80 a barrel. Prices rose as high as $94.74 in intraday trade, surpassing crude's all-time record trading high of $93.80 a barrel, also set Monday.
oil_rig.03.jpg
Oil prices jumped over $4 Wednesday, setting a new record.
Special Reportfull coverage
GAS CRUNCH
Oil: No longer a heavyweight
Oil jumps $4 on Fed, supplies
The new math of oil
How a Fed rate cut raises oil prices
Video
More video
Crude awakening
CNN's Charles Hodson speaks with Peter Dixon of Commerzbank about the spike in oil prices.
Play video
The Fed cut its key funds rate by a quarter percentage point Wednesday. The move, which will effect the amount both consumers and business have to pay to borrow money, was expected and traders said most of the quarter point cut was already priced into oil.
Oil prices initially retreated to trade below $94 a barrel just after the late-day interest rate news.
A rate cut also pushes down the dollar, in which oil is priced. A falling dollar makes oil cheaper for foreign consumers and means oil producing countries have less incentive to raise production, both of which are bullish for oil prices.
Full story here
U.S. light crude for December delivery jumped $4.15 to settle at a new record of $94.53 a barrel on the New York Mercantile Exchange, topping Monday's record close of $93.80 a barrel. Prices rose as high as $94.74 in intraday trade, surpassing crude's all-time record trading high of $93.80 a barrel, also set Monday.
oil_rig.03.jpg
Oil prices jumped over $4 Wednesday, setting a new record.
Special Reportfull coverage
GAS CRUNCH
Oil: No longer a heavyweight
Oil jumps $4 on Fed, supplies
The new math of oil
How a Fed rate cut raises oil prices
Video
More video
Crude awakening
CNN's Charles Hodson speaks with Peter Dixon of Commerzbank about the spike in oil prices.
Play video
The Fed cut its key funds rate by a quarter percentage point Wednesday. The move, which will effect the amount both consumers and business have to pay to borrow money, was expected and traders said most of the quarter point cut was already priced into oil.
Oil prices initially retreated to trade below $94 a barrel just after the late-day interest rate news.
A rate cut also pushes down the dollar, in which oil is priced. A falling dollar makes oil cheaper for foreign consumers and means oil producing countries have less incentive to raise production, both of which are bullish for oil prices.
Full story here
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