UNITED STATES: American oil price hits $110 a barrel

UNITED STATES: American oil price hits $110 a barrelOil prices pierced $110 a barrel this evening, marking the sixth straight day of record highs, as the dollar sank to new lows and outweighed large increases in United States crude reserves.

Investors have raced into commodities over the past month to hedge against inflation and the slumping dollar, sending oil to fresh peaks despite concerns about the economic health of top oil consumer the United States.

US crude was up $1.25 to $110 after racing to a record $110.20 earlier. London Brent gained $1.05 to $106.30 a barrel, down from an all-time high of $106.40.

Oil prices had fallen earlier after US government data showed a sharp 6.2 million rise in crude stockpiles last week and another gain in petrol levels, which are now at 15-year highs.

The dollar tumbled to a record low against the euro as doubts grew about the long-term impact of recent Federal Reserve efforts to pump money into credit markets. Strong euro zone industrial production figures also helped the European currency.

Source: RTE Business

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