Oil prices rose past US$112, an intraday trading record highs after the US dollar had a further fall relative to the euro and crude supplies to the US and elsewhere were disrupted. Light, sweet crude for May delivery rose to US$112.48 a barrel on the New York Mercantile Exchange midmorning, but later moved back to US$112.36 a barrel.
Crude was also supported by news of disruptions to oil supplies, though analysts said the disruptions were minor. The Capline pipeline - the Royal Dutch Shell PLC conduit that carries 1.2 million bpd of crude from the U.S. Gulf Coast to the Midwest was closed on the weekend but has since resumed operations at a slightly reduced capacity. In Nigeria, Italian energy giant ENI reported a 5,000 bpd reduction in production at one of its facilities.
Crude oil's recent dash above US$100 a barrel has been due to a steadily depreciating US dollar because a weakening dollar prompts investors to seek a safe haven in hard commodities such as oil and gold.