By GILLIAN WONG, Associated Press
SINGAPORE – Oil prices jumped to an all-time trading high near $112 a barrel Monday in Asia as the tumbling U.S. dollar and plunging stock markets prompted investors to seek shelter in commodities.
Investors fled the dollar after a surprise move by theon Sunday to provide cash to financially squeezed pushed the battered greenback deeper into multiyear lows against the yen.
“The Fed’s move overall will help the liquidity of the U.S. dollar, and that will really further soften the dollar,” said Victor Shum, an energy analyst with Purvin & Gertz in. “Meanwhile, investors seem to be just following the mantra of buying oil and commodities to hedge against the falling dollar and inflation.”
Light, sweet crude for April delivery spiked to a record $111.80 a barrel — up $1.59 from Friday’s close — in electronic trading on the, midafternoon in Singapore. It later slipped back to $111.61 a barrel.