Oil Gushes to Record $105.96

A weakening dollar and falling inventories of oil are pushing crude prices up
By Jim O'Neill,  Newser User
Posted Mar 6, 2008 8:32 AM CST
Two engineers work on a oil drilling site in Santa Cruz del Norte, Cuba, Saturday, March 24, 2007. Cuba has opened its doors to international experts in order to show them the island's oil exploration...   (Associated Press)
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(Newser) – An ever-weakening dollar, an unexpected drop in US crude oil reserves, and a Wednesday OPEC decision not to boost production helped spur oil to a record $105.96 a barrel, Bloomberg reports. It's the third record this week, and the dollar’s $1.5345 against the euro is the lowest level its reached since the euro was introduced in 1999.

“The market is still focused on the weakness of the dollar,” said one analyst. "It's going to take more signs of demand destruction around the world before oil stops gaining on the dollar.'' Oil supplies in the US are at record levels, and analysts had expected more good news for the eighth straight week in the form of a 2.4 million barrel increase. Instead, the Energy Department said supplies dropped 3.06 million barrels.