Oil prices continue to soar, going above $114 for the first time on Tuesday. US light, sweet crude oil, rose to a fresh high of $114.46 after initially easing a little on Wednesday, while Brent crude gained 54 cents to $112.27.
The weak dollar and continuing stock market volatility have been pushing investors towards commodities. When the dollar weakens it also becomes cheaper for foreign buyers to invest in commodities, which are priced in the US currency.
Together with the credit squeeze and rising inflation (notably food prices) this is yet another nail in the coffin of economic growth.
