Oil rose to a new record high above $143 a barrel on Monday, as expectations of a weaker dollar spurred investors to seek refuge in dollar-denominated oil futures as a hedge against inflation.
Light, sweet crude for August delivery was up $3.31 to $143.52 a barrel in electronic trading on the New York Mercantile Exchange, by midday in Europe. Earlier in the session, the contract rose to a new record high of US$143.67 before falling back slightly.
On Friday, crude futures had spiked at a record $142.99 a barrel in New York before closing at $140.21. In London, Brent crude futures rose $3.44 to $143.75 a barrel on the ICE Futures exchange in London.
Analysts said daily trading volumes for Nymex oil would probably continue last week’s trend and stay on the light side, leading to higher volatility during the trading sessions.