Oil has hit new record highs with the markets convinced that it’s on track to reach one hundred and fifty dollars due to a combination of a weak dollar, new figures showing lower US crude stocks and tension between Israel and major crude producer Iran. Traders also rushed to buy ahead of the US Independence Day long holiday weekend.

London Brent crude hit a peak of one hundred and forty six dollars and sixty nine cents. So far this year, the price is up by forty six per cent.

The weakness of the US currency has helped to fuel this year’s rally in commodities that are sold in dollars, including oil. Crude prices did ease slightly as the dollar rose in response to US jobs figures.

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