Oil hits new record due to weak US dollar

The price of oil hit a fresh record high today as the dollar continued to fall against other major currencies and on expectations that Opec will remain stubborn on its output policy.

The dollar tumbled to lifetime lows against the euro and a basket of major currencies on Monday before regaining some lost ground after better-than-expected US manufacturing data.

US crude oil for April delivery was up US$1.72 at US$103.56 a barrel at 1838 GMT, after an earlier record high of US$103.95.

London Brent crude was up US$1.62 up at US$101.72 a barrel.

"There is no top in sight yet for crude futures because hedge funds are looking at how far the US dollar will fall," said Phil Flynn of Alaron Trading in Chicago.

"They are buying commodities to hedge against inflation because hanging on to the dollar means they lose value."

- REUTERS