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Investors are having a rough time dealing with record oil prices and the after-effects of the credit crunch. Crude oil surged to a new intraday record above $126 a barrel. Fund managers and speculators are piling into the energy complex amid new global supply concerns. Worries now revolve around home heating oil and diesel fuel. Meantime - the dollar is heading lower and that too is giving oil prices an extra bounce. OPEC of course is monitoring the situation. The group may hold earlier-than-expected talks to discuss a possible output boost, according to an OPEC source. Citigroup announced plans to divest $400 billion in assets over the next two to three years. Newly installed CEO Vikram Pandit is trying to restore the company's image and balance sheet. His three-pronged strategy: getting fit, restructuring, and maximizing the company. Critics say he has to slash costs, shed poorly performing assets and maybe even split up the bank. The major U.S. financial institution has posted $45 billion in losses and write-downs as a result of the the subprime turmoil and a seizing up of the credit markets. American International Group posted a record loss late-Thursday further clouding the picture for the financials. The record shortfall of $7.8 billion was due largely to subprime related writedowns. The world's largest insurance company warned the credit markets are still on rocky ground and that it would have to raise $12.5 billion to shore up its balance sheet. Conway Gittens, Reuters.