The per-barrel Oil price hit near record levels of $110 dollars in the market, propped up by the declining US dollar.
The movement of investors into the commodities market looking for a safe place to hedge against inflation and the weakening US dollar was also contributing to the rise in crude prices.
In early morning trading, the New York Stock Exchanges main contract, light sweet crude for April delivery reached trading levels at 110.12 US dollars per barrel before ending trading at $109.85 dollars per barrel.
London’s Brent North Sea crude oil prices for April delivery eased 22 cents to $106.05 US dollars.
“Fundamentals are well and truly out of the window when it comes to oil prices,” said Jan Lambregts, head of regional research at Rabobank in Hong Kong.
“A lot of money’s obviously looking for a place to park and crude oil appears to be one popular destination among commodities in general,” he noted, and then added “the weak dollar doesn’t help one bit at this stage.”
The failing US dollar has also fueled a jump in world oil prices because crude that is priced in US dollars and has become cheaper to buy for purchasers holding stronger currencies abroad.
The US dollar dropped to a new low with an exchange rate of 1.5570 dollars to one Euro on Wednesday.
Note – 1 Barrel of oil = 159 Liters or 42 Gallons