Oil futures surged to a new trading record above $120 a barrel Monday, raising concerns about higher prices for gasoline and goods and services throughout the economy.

Retail gas prices fell more than a cent over the weekend, but oil's advance increased the likelihood that pump prices would resume their climb.

Supply threats that emerged overseas and a weaker dollar sent light, sweet crude for June delivery to $120.36 a barrel on the New York Mercantile Exchange before futures retreated slightly to settle up $3.65 at a record $119.97.

In most years, gas prices peak in May or early June, then mostly decline for the rest of the year. But oil at $120 -- and rising -- may force the experts to rewrite their rule book.