Mumbai: Oil showed some backtracking towards $125 a barrel from its earlier high of $126 a barrel over the weekend, on account of a stronger dollar and profit-taking from a rally that saw it spike to record levels over the last week.

US light crude for June delivery climbed down around 77 cents to $125.19 a barrel, as compared to the new record high on Friday of $126.27, mainly on account of supply concerns and speculator buying. London Brent crude too fell around the same amount to $124.63.

OPEC has said that the runaway oil prices are beyond its control, and it has no plans for meeting before its next scheduled meeting in September 2007.  In the US, gasoline retail prices at fuel pumps increased to $3.718 a gallon of unleaded, up from $3.707 a gallon on the weekend.

The dollar rose narrowed the gap on a two-month high against a number of currencies at the start of the week, witnessing a perceptible rise in risk appetite and mounting speculation that cuts to US interest rates may soon end.

Oil has spiked around 13 per cent from the start of the month, when it was at $110.53 a barrel. This is being attributed to supply disruptions in the North Sea and Nigeria, and the ever-increasing demand for diesel. Sources say that gains in oil are account of funds being invested into commodities as worldwide financial markets weaken.