LONDON, March 12: Oil prices hit a record high $109.85 on Wednesday as the dollar plumbed new all-time lows against the euro, which overshadowed news of a rise for US energy inventories, traders said.
New York’s main oil contract, light sweet crude for delivery in April, beat the previous record of $109.72 set on Tuesday.
Brent North Sea crude for April hit a record $106.39, comfortably topping the $105.82 seen on Tuesday.
“Whether you call this run speculative buying or hedging against dollar weakness, it definitely has nothing to do with oil market fundamentals” of supply and demand, Standard Bank analysts said in a research note.
“The northern hemisphere spring is around the corner -- usually a time for crude demand and prices to slump,” they added.
The International Energy Agency, which seeks to coordinate energy policy among the world’s leading industrialised nations, said Wednesday that it would convene a meeting of oil industry experts on the current spike in prices.
“There will be a meeting (on Monday in Paris) on prices with experts, both from the financial and (oil) trading sectors, as well as with representatives of the production and refining sectors,” an IEA spokeswoman told AFP.
After hitting new heights on Wednesday, New York crude was at $109.70, up 95 cents on Tuesday’s close in later trade. Brent gained 65 cents to $105.90.
The dollar meanwhile plunged to an all-time trough of 1.5514 to the euro following publication of strong eurozone industrial production figures.
A weak US unit makes dollar-denominated oil cheaper for buyers holding stronger currencies, pushing up demand for crude.
Elsewhere on Wednesday, the US Department of Energy said that US crude oil stocks had risen 6.2 million barrels last week -- far above the gain of 1.7 million that analysts had predicted.—AFP
