*Oil Rises Above $102 as Weak Dollar Boosts Commodities Prices * Feb. 27 (Bloomberg) -- Crude oil rose to a record as a weakening dollar spurred investors to buy commodities priced in the U.S. currency.
Futures jumped in New York and London as the dollar fell to an all-time low against the euro. The UBS Bloomberg Constant Maturity Commodity Index rose to the highest ever, on gains for wheat, sugar, copper, cotton and cocoa. ``The surge in oil futures is a result of investors moving money away from financial markets and into commodities,'' said Victor Shum, senior principal at Purvin & Gertz Inc. in Singapore. ``Concerns over inflation have superseded fears of a U.S. recession and commodities now seem to be the best hedge against inflation.'' Crude oil for April delivery rose as much as $1.20, or 1.2 percent, to *$102.08 a barrel *in electronic trading on the New York Mercantile Exchange. The contract traded at $101.90 at 9:12 a.m. in London. The dollar weakened to $1.5055 a euro, the lowest since the European single currency was introduced in 1999. The dollar has declined against all of the world's 16 biggest currencies in the past 12 months apart from the Korean won and South African rand. ``Because oil has an intrinsic value, it's not exactly sensible that it becomes cheaper in other currencies so you get an adjustment upward in the U.S. dollar value of oil,'' said David Moore, commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. ``The general strength of commodity prices would instantly improve sentiment toward the oil price.'' for more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a9ARNfhLmswQ&refer=home
