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Crude Oil Rises to Record $111
 March 13 (Bloomberg) -- Crude oil rose to a record $111 a barrel in New York as the sinking value of the dollar attracted investors to commodity markets. The dollar dropped below 100 yen earlier today for the first time since 1995 and declined to a record low against the euro. Investors looking for higher returns have flocked to commodities. Oil surged 90 percent over the past year as the Standard & Poor's 500 Index dropped 4.4 percent.``Energy trading continues to be dollar dominated,'' said John Kilduff, senior vice president of energy at MF Global Ltd. in New York. ``The reverberations from the credit markets and U.S. economic policies are creating an inflation wave in hard assets and traditional inflation havens.'' Crude oil for April delivery rose 41 cents, or 0.4 percent, to settle at a record $110.33 a barrel at 2:49 p.m. on the New York Mercantile Exchange. Futures began trading in 1983. Brent crude for April settlement rose $1.27, or 1.2 percent, to $107.54 a barrel on London's ICE Futures Europe exchange, a record close. Futures reached an intraday record of $107.88 a barrel today. Energy and metals prices have surged over the past year as the U.S. currency plunged, prompting investors to seek a hedge against inflation. The euro rose over the past year as the Federal Reserve cut rates amid the worst housing slump in a quarter of a century, and $190 billion of U.S. subprime-mortgage- related losses and markdowns by financial institutions. ``Unless and until the dollar policy changes, energy prices will continue to soar,'' Kilduff said. Posted by: Steve White 2008-03-14 |
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