Crude oil was little changed above $113 a barrel in New York after touching a record yesterday as investors purchased commodities because their returns have outpaced stocks, bonds and other financial instruments.
Oil climbed to $114.08 a barrel yesterday, the highest since futures began trading in 1983. Rising global demand for raw materials and a weakening U.S. dollar have led to record prices this year for commodities including corn, rice and gold. China's imports of diesel fuel jumped 49 percent in March while crude inflows climbed 25 percent during the month.
``Oil is matching gold as a hedge on the dollar so it's certainly being seen as a financial instrument,'' said Mark Pervan, a senior commodity strategist at Australia & New Zealand Banking Group Ltd. in Melbourne. ``The market is looking for positive news and the Asian growth story is going to grab more momentum.''
Crude oil for May delivery was at $113.60 a barrel, down 19 cents, at 9:25 a.m. Singapore time in after-hours electronic trading on the New York Mercantile Exchange. Oil closed at a record $113.79 a barrel yesterday.
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