Oil price strikes record high above 103 dollars

LONDON (AFP) – The price of New York crude oil hit an all-time high point of 103.05 dollars per barrel on Friday owing to record weakness of the dollar but then fell back, traders said.

And the price of gold reached an historic peak of 976.32 dollars per ounce.


“This was part of a broad-based commodities run based on the continued weakness of the dollar,” said Petromatrix analyst Olivier Jakob.

A weak US currency boosts demand for dollar-denominated raw materials such as crude oil because it makes them cheaper for buyers using stronger currencies. However the increased demand eventually leads to higher prices.

AFP