Oil holds near record highs

Oil holds near record highs
AFP
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First Published: Fri, Mar 07 2008. 11 29 AM IST
Updated: Fri, Mar 07 2008. 11 29 AM IST
Singapore: Oil prices held close to record highs near $106 a barrel on Friday as the market continued to worry about supplies and and a tumbling US dollar, dealers said.
In morning trade, New York’s main oil contract, light sweet crude for delivery in April, rose 13 cents to $105.60 per barrel.
The contract had closed up 95 cents at a record high of $105.47 a barrel on Thursday after rallying to a an unprecedented trading peak of 105.97 in earlier trading at the New York Mercantile Exchange.
In London, Brent North Sea crude for April delivery was up eight cents at $102.69, after settling at a record finish of $102.61 on Thursday.
The contract had earlier struck a record trading peak of $102.95.
“Prices remain strong as the US dollar fell to record lows,” said Victor Shum of Purvin and Gertz energy consultants in Singapore.
“Oil and other commodities have been driven by financial investors seeking a safer haven from the turmoil in equities.”
Dollar-priced raw materials like oil tend to gain from the weak US unit because a fall in the dollar makes them cheaper for buyers using other, stronger currencies.
The dollar has been hit by a stream of weak economic data in a continuing fallout from a crisis in the US housing market. The euro has been on a record breaking run for weeks, topping $1.50 on 26 February.
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First Published: Fri, Mar 07 2008. 11 29 AM IST
More Topics: Oil | Asia | Crude | Dollar | Euro |