Friday, crude oil prices recorded another all time record high of $127.82 per barrel as China increased its demand for imported diesel while is projected to rise even higher in June. China which is known to be the second largest energy consumer is stocking up on diesel fuel due to the upcoming Olympic Games even after the earthquake damaging roads and hydroelectric plants.
A major support to crude prices rally was the greenback losing strength in the market as the last weeks US economic data negatively affected the dollar. As investors saw this, they turned more of their investment to the crude oil market as they saw it as a hedge against inflation and the falling dollar. The contract gained $2.17 as it closed at $126.29 while recording a low of $124.04 per barrel.
Still the markets remain bullish even after Saudi Arabia decided on increasing oil production by 300,000 while Iran the world