Oil price rises set record

The price of oil set another record today after passing the 103 dollars a barrel mark.

Light, sweet crude for April delivery continued a week of unprecedented rises after fetching 103.05 dollars in electronic trading on the New York Mercantile Exchange. It later fell back to stand just below 102 dollars.

The spike came amid fresh fears of a US recession, leading to expected lower interest rates across the Atlantic. This has seen investors switching funds from US dollar currency into commodities such as oil and metals to try and maximise their returns.

Victor Shum, an energy analyst with Purvin & Gertz in Singapore, said: “Due to the weakening dollar and the rising fear of inflation, investors have put money into commodities, oil included.

“Commodities, as tangible assets, do not face as much inflationary threat as opposed to holding a currency.”

On Wednesday oil prices breached 102 dollars a barrel in New York for the first time, with Brent oil futures – the main European price benchmark – also reaching new highs above 100 dollars.

In London today, Brent topped the 101 dollars a barrel mark amid the New York surge.