(Adds quote, updates prices)
By Annika Breidthardt
SINGAPORE, April 15 (Reuters) - Oil futures advanced to
all-time peaks on Tuesday, supported by supply disruptions and
speculation that the dollar may continue to trend lower.
U.S. light crude for May delivery <CLc1> rose 39 cents to
$112.15 a barrel at 0634 GMT, after touching $112.48 a barrel,
the highest level ever reached by U.S. crude futures.
U.S. futures are up 17 percent from the start of the year.
London Brent crude <LCOc1> rose 36 cents to $110.20 a
barrel, after a record-high of $110.45 earlier in the session.
"It has some self-fulfilling momentum at the moment," said
David Moore, commodities strategist at Commonwealth Bank of
Australia.
"But there are no specific new fundamental factors that
should drive it higher from yesterday."
Tetsu Emori, fund manager at Astmax Co Ltd said prices had
risen due to automatically placed buying orders once the
previous record had been breached. Emori sees the next
resistance target at $115.00 a barrel.
Rising global crude oil demand, such as from rapidly
growing China, has put oil in tight supply and driven its
rally. The advance has been helped by a low dollar and
investment flows from hedge and pension funds into commodities
and oil.
But that is balanced against increasing worries that an
economic slowdown that mean a sharp drop in U.S. and world
demand for commodities.
Underlining supply fears, Mexico -- one of the top
exporters to the U.S. market -- kept its three main crude oil
exporting ports in the Gulf of Mexico shut on Monday due to bad
weather. []
Those three ports ship about 80 percent of Mexico's crude
exports. A smaller port in the Pacific was also shut, the
Mexican government said.
"The system is so tight that any supply problems cause real
concern," said Robert Nunan of Mitsubishi Corp in Tokyo.
"We just don't have the big cushion any more that we used
to have, so it's much easier for money to come in and prop up
prices now," he added.
PIPELINE UP AGAIN
Easing some supply concern, oil major Royal Dutch Shell Plc
<RDSa.L> restarted the giant U.S. Gulf to Midwest Capline crude
oil pipeline on Monday after completing repairs on a small leak
discovered on Friday, the company said. []
Shell had shut the 1.14 million barrels per day (bpd)
capacity line on Friday after a worker discovered a crack that
resulted in approximately 10 gallons of oil being spilled.
On Tuesday, the dollar edged up against the yen and the
euro in cautious trading ahead of U.S. economic data and
first-quarter earnings results from financial institutions,
which are expected to give clues on the state of the economy
and credit markets.
But it was still below highs reached after the Group of
Seven financial heads made its strongest expression in seven
years about the volatility in major currencies and some dealers
said the weak dollar trend would continue.
A weak dollar tends to raise prices for commodities
denominated in that currency by boosting non-U.S. spending
power and by attracting investors seeking an inflation hedge.
U.S. gasoline futures hitting fresh highs on Monday also
helped prices.
They rose as the United States gears up for the summer
driving season, when demand traditionally peaks, but the Energy
Information Administration has said drivers may use less for
the first time since 1991, due to lofty pump prices and a weak
economy.
And the U.S. government said U.S. consumers were spending
more than ever to fill up at the pump, as the average price for
gasoline climbed to a new high of $3.39 a gallon after rising
5.7 cents over the last week. []
U.S. crude oil inventories figures are due on Wednesday.
They likely rebounded last week after a surprise drawdown
the week before, with an increase in imports lifting supply,
according to a preliminary Reuters poll of eight industry
analysts. []
(Editing by Louise Heavens)
