Oil prices break fresh record high
Posted by Big Gav
They just keep rising...
Oil prices struck a record high of 109.72 US dollars per barrel on Tuesday after the dollar hit a fresh all-time low against the euro and amid persistent energy supply concerns.
New York's main oil contract, light sweet crude for delivery in April, soared to the historic level, beating the previous peak of 108.21 dollar that was set on Monday. Also on Tuesday, Brent North Sea crude for April hit a record high 105.82 US dollars on barrel, beating the prior high of 104.42 US dollars touched on Monday.
In the foreign exchange market, the European single currency surged to a record high 1.5495 US dollars. A weaker US currency tends to increase demand for dollar-denominated oil as it becomes cheaper for buyers using stronger currencies.
Oil prices are also heading higher because investors are seeking a safe place for their cash amid fears of rising inflation and a US recession, analysts said.
There was a time when a US recession would make the oil price fall - how times have changed...
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