New York crude prices break records again

Crude oil hit another record high in New York on Thursday as it rose to $105.97 per barrel before easing back slightly but still closing above $105 per barrel.

April contracts for West Texas Intermediate crude was 98 cents above Wednesday’s close at $105.50 per barrel at the close of floor trade on the New York Mercantile Exchange, while Brent crude for April delivery added $1.01 to $102.65 per barrel after going as high as $102.95 per barrel on the ICE Futures Europe exchange in London.

At least one analyst pointed out that supply and demand have been eclipsed as market drivers as more investors see oil as just another commodity to be purchased as a hedge against inflation.

As long as this persists, especially among pension funds, prices are likely to remain high.

In afternoon trade, Nymex April gasoline and heating oil each dropped 3 cents, to $2.61 per gallon and $2.91 per gallon respectively, while April natural gas gained 5 cents to $9.79 per million British thermal units.