World oil prices surged to a record peak above 99 dollars per barrel on Wednesday on the back of the falling US dollar and tight global crude supplies, traders said.
New York’s main contract, light sweet crude for January delivery, rocketed to an historic 99.29 dollars.
In London, Brent North Sea crude for January delivery jumped to an all-time pinnacle of 96.53 dollars per barrel.
“It’s on the upswing again,” said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
“I think the market is poised to make another run towards 100 dollars.”
Later Wednesday, New York crude stood at 98.51 dollars per barrel, up 48 cents from Tuesday’s close. London Brent oil added 37 cents to 95.86 dollars.
On the foreign exchange market, the dollar dived to a fresh record low point against the euro on Wednesday.
The European single currency surged to a record 1.4855 dollars, as the US currency was hit by renewed worries about the outlook for the American economy, analysts said.
The weak dollar encourages demand for commodities like oil, which are priced in the greenback, because they become more attractive to investors using stronger currencies.
Oil market traders will focus later Wednesday on the traditional weekly update on the state of US energy inventories.
Heating fuel demand is expected to rise during the forthcoming northern hemisphere winter, while energy appetite from emerging markets such as China and India shows no sign of slowing, dealers said.