Crude rises above $108 per barrel in New York

Crude oil prices were higher again Monday, hitting a new record at $108.17 per barrel before falling back a bit but remaining above $107 per barrel at the close of floor trade in New York.

April contracts for West Texas Intermediate crude were at $107.85 per barrel at the close on the New York Mercantile Exchange, a gain of $2.70 on the session and slight decline from its peak earlier, while Brent crude added $1.79 to $104.17 per barrel on the ICE Futures Europe exchange in London.

Investors put their money into oil as a hedge against declines in the dollar despite the greenback’s strength versus the euro on the day as many believe that the dollar will continue to decline versus the shared currency, ignoring data showing that supplies are generally increasing as demand declines.

Also ignored was the relaxing of tensions over the weekend in South America as Venezuela reestablished full diplomatic relations with Colombia after last week’s threats over an incursion by Colombia into Ecuador for an attack against a rebel outpost there.

The price of crude oil sent at-the-pump gasoline prices up another 0.7 cent overnight in the United States to an average of $3.22 per gallon nationally, 69 cents higher than the price last year at this time and near last May’s peak price.

Retail prices for gasoline in the US have risen by 24 percent in the past month.

Nymex April gasoline futures added 1 cent to $2.70 per gallon on the session while April heating oil was up 3 cents to $2.98 per gallon and April natural gas gained 27 cents to $10.04 per million British thermal units.