World oil prices have fallen back after hitting new highs near $112 a barrel early this morning.
The US dollar's slumped to a fresh low against the euro had sparked a rush of funds into dollar-priced commodities such as oil and gold, but a slight recovery in the US currency later brought prices lower.
US crude hit a record high $111.80 in early trading, It later stood at $107.86, down $2.35 from Friday's close. Brent North Sea crude fell $2.72 to $103.48.
Prices smashed key record levels last week, with New York crude touching $111 for the first time, as investment demand was also driven by the tumbling dollar.
The dwindling value of the US currency encourages demand for dollar-priced oil because it becomes cheaper for buyers using stronger currencies, while investors also seek to guard against risks to higher inflation.
Meanwhile, gold jumped to a record high of $1,032.70 an ounce in early trading this morning. Gold is seen as a safe haven against tumbling world stock markets and a falling dollar.
