Crude Oil surges to new record, Dollar plunges

By Jon Nones
April light, sweet, crude on the New York Mercantile Exchange was trading $1.53 higher at $109.43 a barrel, just off its latest peak of $109.72 a barrel.

April Brent contract on London's ICE futures exchange was up $1.44 at $105.60 a barrel, having set a new record high at $105.82 a barrel earlier.

The U.S. dollar fell to a new record low against the euro Tuesday, and was trading lower against most major currencies. The euro rose to a record high of $1.5495 and traded at $1.5470 by 7:27 a.m. in New York, from $1.5343 yesterday. The U.S. dollar index was last down 0.024 at 72.971.

Also supporting prices was a statement by the International Energy Agency that crude demand in China and other emerging markets is likely to remain brisk despite higher prices.

The agency revised down 2008 crude consumption in the U.S., Europe and other developed markets but revised up its 2008 oil demand forecast for China and other non-OECD countries, leaving its demand growth forecast little changed at 2%.