NEW YORK, June 27 (Xinhua) -- Crude futures set a new
record high of near 143 U.S. dollars a barrel Friday as the weakening dollar and
tumbling stock market sent more investors into commodity market.
Light, sweet crude for August delivery touched 142.99 dollars a barrel before retreating and settling up 57 cents at 140.21 dollars a barrel on the New York Mercantile Exchange.
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Traders work at the New York Mercantile Exchange in New York, the United States, June 27, 2008. Light, sweet crude for August delivery touched 142.99 dollars a barrel, a new record as the weakening dollar and tumbling stock market sent more investors into commodity market, before retreating and settling up 57 cents at 140.21 dollars a barrel on the New York Mercantile Exchange on Friday. (Xinhua Photo)
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On Thursday, prices surpassed 140 dollars a barrel
for the first time and surged more than 5 dollars to a new settlement record
after OPEC predicted oil to reach 170 dollars a barrel this summer and OPEC
member Libya threatened to cut output.
The dollar fell on Friday, which has roughly remained
in the record low area against the euro. The market took the Federal Reserve's
Wednesday decision of keeping interest rates steady as a sign that interest rate
rise is unlikely in the near future. Traders believe the dollar would continue
to fall since higher rates tend to strengthen the currency. And consequently,
more investors turned to commodities including crude oil as a hedge against
inflation.
Tumbling stock market is also sending more investors
to buy oil. Dow Jones slid nearly 360 points on Thursday, hitting the lowest
close since September 11, 2006, and continued to fall over 100 points on Friday.
The U.S. House of Representatives on Thursday passed
a bill that directs the Commodity Futures Trading Commission to use all its
authority to curb speculation in energy futures markets.
In London, Brent crude for August delivery rose 48 cents to settle at 140.31 dollars a barrel on ICE Futures Exchange.
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