Oil jumps to new record above $106

NEW YORK – Oil prices jumped to a new record above $106 Friday in choppy trading after the dollar fell to a new low against the euro.

Light, sweet crude for April delivery rose 71 cents to $106.18 a barrel on the New York Mercantile Exchange. Prices changed direction several times before setting a new trading record of $106.42.


The dollar set a new low against the euro Friday before rising. Many analysts believe the weak dollar is the reason why oil prices, and other commodities, are surging. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.

A weak jobs report also fueled oil’s rise by convincing traders that the Federal Reserve will lower interest rates, which tends to weaken the dollar.

AP