Crude oil rose to a record for a second day, climbing above US$141 a barrel in New York, as a weaker dollar spurred investment in commodities.
Oil prices have gained nearly 50% this year and many banks and the Organization of Petroleum Exporting Countries predict further gains. The U.S. dollar headed for a back-to-back weekly decline against the euro, sparking demand for dollar- priced commodities such as gold and oil used to hedge inflation.
``Physical buyers in Asia are going to the market now because they're concerned about prices going further, and that in turn prompts short-covering amongst the banks,'' said Rob Laughlin, a senior broker at MF Global Ltd. in London. ``Dollar weakness also remains a factor in commodity strength.''
Crude oil for August delivery rose as much as US$2.07 a barrel, or 1.5% , to US$141.71 in after-hours trading on the New York Mercantile Exchange. It was at US$141.41 at 8:47 a.m. London time.
