Oil Trades Near Record as U.S. Dollar Falls

Crude oil traded near a record in New York as the U.S. dollar dropped to an all-time low against the euro and investors pumped funds into the market to reap returns from rising commodities.
TradingEconomics.com, Bloomberg 2/26/2008 7:41:24 PM

Brent oil, the benchmark for two-thirds of world supply, rose to a record $100 a barrel in London as the dollar, which is used to price crude, fell against most major currencies. New York futures yesterday reached $101.43. The UBS Bloomberg Constant Maturity Commodity Index increased to the highest ever, on gains for wheat, sugar, copper, cotton and cocoa.

Crude oil for April delivery rose as much as 47 cents, or 0.5 percent, to $101.35 a barrel on the New York Mercantile Exchange and was trading at $101.05 at 10:25 a.m. in Singapore.

Yesterday, crude futures settled at $100.88 a barrel, a gain of $1.65, or 1.7 percent. It was the highest close since trading began in 1983.

The dollar weakened to $1.5047 per euro, the lowest since the European single currency was introduced in 1999, before trading at $1.4987 as of 10:10 a.m. in Singapore. The dollar declined against all of the world's 16 biggest currencies in the past 12 months apart from the Korean won and South African rand.