Oil prices soared to new highs above USD 111 in Asian trading on Monday as the US currency slumped to another fresh low against the euro, sparking a rush of funds into commodities including crude.
In afternoon trading, New York's main contract, light sweet crude for April delivery was trading at USD 111.18 a barrel after soaring earlier to a fresh all-time high of USD 111.42.
New York oil prices closed on Friday at USD 110.21 at the end of US trading hours, a day after hitting USD 111 for the first time in its history.
Brent North Sea crude for May delivery was up 80 cents to USD 107.
The April contract expired Friday at USD 107.54.
The latest record-setting mark in New York oil prices came as the euro rose to a lifetime peak of USD 1.5905 in Asian trading on Monday while the US currency fell to as low as 95.75 yen, a level not seen since September 1995.
The US currency's continued plunge against the euro and other major units is triggering a flood of funds into commodities such as oil which are seen as safe havens amid rising concerns over the US economy and financial turmoil from a global credit squeeze.
"At the moment it really seems to be a case where the continued dollar weakness appears to be the key driver for oil," said Gerard Burg, a minerals and energy economist with National Australia Bank in Melbourne.
"The kind of evidence we are seeing at the moment in the US equity markets is counter cyclical to the commodity markets," he said.
Source: DDNEWS
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
