New Delhi: Oil prices crossed the $110 a barrel mark on Wednesday for the sixth straight day of record highs.
The main reason behind the rise was because the dollar fell to new lows prompting US investors to buy commodities.
Prices briefly touched $110.20 before settling around $109.92 a barrel. Investors have raced into commodities over the past month to hedge against inflation and the slumping dollar.
This has sent oil prices rising despite concerns about the economic health of top oil consumer, the United States, and increasing fuel stocks.
Analysts said the uptrend is not likely to die soon. The Organization of the Petroleum Exporting Countries have meanwhile decided to keep output unchanged.
The dollar set a number of new low marks against the Euro on Wednesday, attracting new buyers to the oil market.
The rise is despite a 10.2 per cent rise in crude supplies since early January.
Oil prices initially fell on Wednesday in New York trading after the US Energy Department's Energy Information Administration said crude supplies rose 6.2 million barrels last week, more than three times the 1.6 million barrels forecast by analysts surveyed by Dow Jones Newswires.
But buyers quickly returned to the market.
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