Oil prices surged past $105 for the first time on Thursday as traders reacted to a surprisingly sharp fall in United States crude reserves and the plunging US dollar, analysts said.
New York’s main oil contract, light sweet crude for delivery in April, hit $105,10 per barrel, topping the previous record of $104,95 set on Wednesday.
Meanwhile, Brent North Sea crude for April spiked to $102,29, matching the all-time peak that was hit on Monday.
The US Department of Energy said on Wednesday that American crude inventories tumbled 3,1-million barrels last week, marking the first weekly drop for one-and-a-half months.
The news shook the market, which had been expecting a gain of 2,4-million barrels and sent New York crude spiking close to $105.
On the foreign exchange market on Thursday, meanwhile, the euro hit a record high point at 1,5347 dollars.
Dollar-priced raw materials like oil tend to gain from the weak US unit because a fall in the dollar makes them cheaper for buyers using other, stronger currencies. — AFP