The price of oil rose to a record high above $114 dollars a barrel Wednesday as the sinking dollar made crude more attractive to investors.
Crude oil for May delivery rose to a record level of $114.50 cents in New York, up about six-tenths of a percent from Tuesday's close.
The weak dollar makes commodities like crude oil cheaper for buyers using other currencies such as the euro. The dollar fell today to an all-time low against the European currency, which now buys one $1.59.
Dealers say oil prices are rising also because of strong demand from China, whose economy grew 10.6 percent in the first quarter of this year.
Iran's oil minister is rejecting appeals from oil consuming nations for the OPEC oil cartel to increase production to help lower oil prices. Iran is a leading OPEC member.
The United States and Britain have recently urged OPEC members to raise their output. But Nozari said today that the U.S. and Britain can, in his words, "continue demanding." Nozari says current oil prices are "suitable" and blames the recent price rally on the weak dollar.
Some information for this report was provided by AFP, AP and Reuters.