NEW YORK, March 3 (Xinhua) -- Crude-oil futures rallied to a record high near 104 dollars a barrel on Monday, boosted by weak U.S. dollar and continuing investment flows into commodities.

 

Oil workers are seen at an oil field in Cabimas in Venezuela's western state of Zulia, near Lake Maracaibo, March 1, 2008. (Xinhua/Reuters Photo) Photo Gallery>>>

   Crude for April delivery surged 2.11 dollars to a new all-time high of 103.95 dollars a barrel on the New York Mercantile Exchange in early morning trading. The front-month contract closed at 102.45 dollars a barrel, up 61 cents, or 0.7 percent.

    The dollar tumbled to all-time lows against the euro and a basket of major currencies Monday before regaining some lost ground after better-than-expected U.S. manufacturing data.

    Analysts said that there is no top in sight yet for crude futures because hedge funds are looking at how far the U.S. dollar will fall.

    As the dollar fell and the health of the U.S. economy worsened, traders said oil offered an inflation hedge and is attractive to foreign investors who can buy dollar-priced commodities at a relative bargain, they added.

    Further support for oil came from signs that members of the Organization of the Petroleum Exporting Countries (OPEC) are not planning to change output policy at their meeting in Vienna this week.

    Tensions in the Middle East, South America and Nigeria remain supportive of oil because of their potential to disrupt supply, according to Reuters.

    In Nigeria, attackers blew up a police houseboat on Bonny Island, an oil and gas export hub in southern Niger Delta. Tight supplies of heating oil and diesel fuel in Europe also provided some support for oil. 

OPEC rethinks oil output cuts as U.S. economy lags

    WASHINGTON, March 3 (Xinhua) -- With high oil prices weighing on a struggling economy, the OPEC oil cartel is reconsidering its plans to cut production, a move that could push prices above their current record levels, The New York Times reported Monday.

    Instead, OPEC is likely to keep output unchanged when its members meet Wednesday, the report said.  Full story

OPEC weekly oil prices keep rising

    VIENNA, March 3 (Xinhua) -- The Organization of Petroleum Exporting Countries' (OPEC) weekly average crude oil prices kept rising for three weeks to hit 94.88 U.S. dollars per barrel last week, the Vienna-based cartel said Monday.

    According to the cartel's secretariat, the daily average oil prices hit a new record of 96.50 dollars per barrel (dpb) last Friday, surpassing the previous record of 95.20 dpb on Feb. 27.  Full story

Dollar falls to 3-year low in Tokyo

    TOKYO, March 3 (Xinhua) -- The U.S. dollar tumbled to the 102 yen level Monday in Tokyo for the first time since January 2005.

    At 5 p.m., the dollar fetched 102.68-70 yen against 103.68-78 yen in New York and 104.33-35 yen in Tokyo at 5 p.m. Friday.   Full story

USD set new low against Euro on weak data

    NEW YORK, Feb. 28 (Xinhua) -- The U.S. dollar reached a new low against the euro Thursday on weak economic data.

    The U.S. economy grew at a scant 0.6 percent pace in the fourth quarter, according to the Commerce Department report, compared with a much healthier 4.9 percent in the previous quarter.   Full story