WTI peaks at $111 per barrel

Crude oil prices were higher again on Thursday, peaking at a new high of $111 per barrel before sliding back slightly, as the dollar weakened again and investors looked for hedges against inflation.

Upward pressures on oil prices have been coming from more than one direction as the dollar has dropped in value.

As the dollar declines, oil becomes less expensive for buyers using other currencies, tempting them to buy more at higher-denominated dollar prices, while declines in the value of the dollar cuts earnings for oil companies, which raise prices to make up those lost revenues.

April contracts for West Texas Intermediate crude ended up 34 cents to $110.26 per barrel on the New York Mercantile Exchange, while Brent crude for April delivery was $1.12 higher to $107.39 after rising to $107.88 earlier in the session.

Nymex April gasoline dropped 5 cents to $2.68 per gallon while April heating oil gained 5 cents to $3.01 per gallon and May natural gas added 22 cents to $10.30 per million British thermal units.