Oil prices hit record high at $103.05 per barrel.

AFP reports that “oil prices charted fresh record territory” today, “rising to 103.05 dollars as the dollar fell to all time lows.” These high oil prices are linked to the weak U.S. dollar:

A weak US currency boosts demand for dollar-denominated raw materials such as crude oil because it makes them cheaper for buyers using stronger currencies. The increased demand, if it outstrips the fall in the currency, leads to higher prices.