Singapore: Oil prices have risen to an intraday trading record above $112 a barrel after the U.S. dollar fell further and some crude supplies were disrupted.
Light, sweet crude for May delivery rose to $112.48 a barrel on the New York Mercantile Exchange midmorning in Singapore Tuesday, surpassing the previous record set last week at $112.21.
The May contract has since slipped back to $112.33, up 57 cents from Monday’s record close of S$111.76 a barrel.
Oil prices hovered near record levels in Asian trading as supply concerns remained a key factor, dealers said.Market sentiment remained bullish after latest U.S government data showed a surprise sharp fall in the country’s energy stockpiles, while the sluggish dollar also contributed to the surge in crude oil futures. A weak U.S currency tends to encourage demand for dollar-priced crude because it becomes more affordable for foreign buyers.