Oil prices hit 114 dollars a barrel
5 hours ago
Crude oil prices rose to a new record above 114 US dollars a barrel as investors opted for commodities over a weaker dollar.
Light, sweet crude for May delivery reached 114.53 dollars in electronic trading on the New York Mercantile Exchange before falling back slightly.
The latest spike followed on from Tuesday's record-breaking run above the 113-dollar mark.
It comes as the euro scaled new heights against the US currency - as much as 1.5946 euros per dollar. Higher inflation in the euro zone that reduces the chance of an interest-rate cut has been cited as the reason for the shift.
John Hall, managing director of energy consultancy John Hall Associates, said unfounded fears over production cuts were helping to fuel the rise.
"The world seems to believe we are about to run short of oil, which is not the case.
"We have also got the dollar weakening, and equities falling, and people with money to burn are moving into oil."
In London, Brent crude futures also reached a new record of 112.27 dollars.
Oil prices are nearly 20% up from the 96-dollars-a-barrel level seen at start of this year.
In tandem with crude's march, UK motorists have also been facing relentless price increases on the forecourts. According to the AA, drivers paid an average of 108.1p for a litre of unleaded on Tuesday, and 117.4p for diesel.
http://ukpress.google.com/article/ALeqM5hMCJZJNn7ygGRSGhH3L1SJhz1dHA
