Crude prices rose to a new record high on Tuesday as the dollar fell and supply disruptions from major oil exporters to the U.S. were announced today.
Crude oil futures rose $1.64, or 1.47 percent to $113.40 a barrel on the New York Mercantile Exchange by 12:53 p.m. Prices hit a record high of $113.66 in earlier trading, their highest since futures trading began in 1983. In a year, prices have gained 78 percent, Bloomberg noted.
The dollar stood near record lows against the euro on Tuesday ahead of financial results from major corporate firms this week.
The recent increase in crude prices above $100 has been mainly attributed to a downgraded dollar that triggers investments into commodities to compensate for inflation.
Concerns about supply disruptions rose as Mexico's state-owned Petroleos Mexicanos closed a terminal on the Pacific Coast due to bad weather, a report from Mexico's Merchant Marine showed Tuesday.
This is the fourth port Pemex has closed because of inadequate weather conditions. The company is the third largest exporter of crude to the United States.
In Nigeria, Italian energy group ENI reported a 5,000 barrel per day reduction in one of its oil wells after an explosion on April 12 near the Beniboye area in Delta state, Eni announced yesterday.
Also, the Capline pipeline -- which carries crude from the U.S. Gulf Coast to the Midwest and is operated by Royal Dutch Shell PLC-- resumed operations but with a slower capacity after closing during the weekend.
Gains in prices today received support from an increase in U.S. gasoline prices on Monday, analysts said. Gasoline demand commonly rises during the summer. Forecasts speculate gas prices will peak as high as $3.65 within a month.
Crude oil futures for delivery in three months were up $1.61 or 1.47 percent to $111.10 a barrel on the London ICE Futures Exchange today.
A weekly report on crude inventories due Wednesday is expected to rebound from the unexpected drop in the latest week, according to a Reuters poll.