Crude surged near US$122 a barrel for the first time in more than two weeks yesterday morning on supply concerns brought by gasoline inventory drop and Georgia tension.

Light, sweet crude for October delivery jumped to as high as US$122.02 a barrel, trading up US$6.46, on the New York Mercantile Exchange.

The rally started on the US Energy Department report that the gasoline stockpiles declined a larger-than-expected 6.2 million barrels in the week ending on Aug. 15, which has sent the inventory to below-average level.

Meanwhile, the tension in Georgia and decline in the dollar also add much push to the oil prices.