Oil hits record high above 103 dollars

Oil prices charted fresh record territory Friday, rising to 103.05 dollars as the dollar fell to all time lows, before profit-taking trimmed the gains, traders said. At the same time gold led other commodities higher too, hitting a record 976.32 dollars per ounce as the troubled, cheaper dollar encouraged buyers.
'This was part of a broad-based commodities run based on the continued weakness of the dollar,' said Petromatrix analyst Olivier Jakob. A weak US currency boosts demand for dollar-denominated raw materials such as crude oil because it makes them cheaper for buyers using stronger currencies. The increased demand, if it outstrips the fall in the currency, leads to higher prices.