Oil prices eased from a record peak of $103.05 a barrel today as Turkey's withdrawal of troops from northern Iraq eased geopolitical tensions, clipping the fund-driven rally to new inflation-adjusted highs.
US crude fell 66 cents to $101.93 a barrel by 5.30pm, after hitting its peak earlier.
London Brent crude dropped 66 cents to $100.24 a barrel, off its record high of $101.27.
Oil has been boosted by the weakness of the US dollar. The euro reached another record of $1.5239 against the US currency this morning.
A weak dollar boosts demand for dollar-denominated raw materials such as crude oil because it makes them cheaper for buyers using stronger currencies.
Runaway oil price levels have sparked widespread speculation that OPEC, the crude exporters' cartel, will maintain current output levels at a production meeting next week. OPEC ministers meet in Vienna next Wednesday.
Concern that OPEC could reduce output has been one of the factors driving prices above $100 this week, analysts say.
Meanwhile, the price of gold rose to a record high point of $976.32 an ounce in London this morning, also helped by the weak dollar. Demand for gold tends to rise at a time of uncertainty about political or economic conditions, and when inflationary pressures appear to be building up.
