Crude oil prices hit a new record in New York above $106 on concerns the U.S. Federal Reserve will add more cuts on interest rates.
The U.S. Labor Department reported today that employers cut 63,000 jobs in February, the biggest drop in five years. The report rose speculations that the Federal Reserve might reduce interest rates to spur economic growth.
Some analysts think lower interests tend to weaken the dollar prompting investors to buy crude futures or commodities. Earlier today, the U.S. currency set a new record low against the euro.
According to Bloomberg, oil has risen as much as 30 percent since the Fed made the first cut in interest rates in September 18, action that also has sent the dollar low.
Crude oil futures for April rose 0.43 cents or 0.41 percent to $105.90 a barrel on the New York Mercantile Exchange at 12:23 p.m. today. London Brent crude was up 0.31 cents or 0.30 percent to $103.14 a barrel on the ICE Futures Exchange.
Oil reached $106.54 a barrel, the highest in 25 years since trading began. According to Bloomberg, prices are up 72 percent compared to 2007.