By Grant Smith
March 6 (Bloomberg) — Crude oil rose to $105.97 a barrel, the third day this week New York prices have reached a record, as the U.S. dollar fell to its lowest ever against the euro.
Gold and copper also advanced to all-time highs as the sinking dollar made commodities priced in the U.S. currency cheaper. Oil closed at a record yesterday after U.S. crude inventories fell for the first time in eight weeks and OPEC refrained from raising production.
“The reason we’ve gone above $105 is that the market is still focused on the weakness of the dollar,” Olivier Jakob, managing director of Petromatrix Gmbh in Zug, Switzerland, said. “It’s going to take more signs of demand destruction around the world before oil stops gaining on the dollar.”