Oil Rises to Trading Record Above $112 [View All]

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Source: Associated Press

Oil rises to trading record above $112
By GILLIAN WONG, Associated Press Writer
30 minutes ago

SINGAPORE - Oil prices rose to an intraday trading record above $112 a barrel Tuesday after the U.S. dollar fell further and crude supplies to the U.S. and elsewhere were disrupted.

The main driver of crude's rally was a decline in the greenback relative to the euro on Monday, analysts said. Crude oil's recent run above $100 a barrel has been largely attributed to a steadily depreciating U.S. currency because a weakening dollar prompts investors to seek a safe haven in hard commodities such as oil and gold.

"We've seen another swing down in the U.S. dollar so I think we saw short-term traders go back into oil as a hedge against the falling dollar," said Mark Pervan, senior commodity strategist at the ANZ Bank in Melbourne, Australia. Light, sweet crude for May delivery rose to $112.48 a barrel in electronic trading on the New York Mercantile Exchange, surpassing the previous trading record of $112.21 set last week.

Read more: http://news.yahoo.com/s/ap/20080415/ap_on_bi_ge/oil_prices