Oil Vs Dollar: The Battle To The Strong

World oil prices leaped Monday, in spite of the fact that London prices were disable to hold a record, amid fresh supply jitters and lingering concerns about the weakening US greenback, traders said.

Prices at NYSE approached to record highs of above 112 dollars which were struck last week on news of falling energy stockpiles in the United States.

Light sweet crude for May delivery, closed at 111.76, up 1.52 dpb compared with Friday's close, marking a record closing high.

London Brent for the delivery in May settled down 1.09 dollars at 109.84 dollars shortly after the contract broke through the 110-dollar barrier for the first time.

Brent oil briefly traded at a record 110.01 dollars before receding as the London market closed for the day.

Traders were forced by supply concerns in the United States, which is the world's biggest economy and the largest global consumer of energy.

The market was also boosted by the flagging US dollar. A weak US currency encourages demand for dollar-priced goods, such as crude oil, as it can make them more affordable for buyers holding other currencies.

"Oil prices should remain firm this week as currency market movements prove central to developments," analysts at energy consultancy John Hall Associates said in a note to clients.

Earlier Monday, prices had fallen due to expectations of a drop in worldwide crude demand after Group of Seven (G7) finance chiefs expressed deep concern over the US economy, analysts said.