NY oil prices close at record high above 110 dlrs

Oil prices quoted in New York closed at a record high above 110 dollars per barrel Thursday amid fevered price speculation on world crude markets.

New York's main oil futures contract, light sweet crude for delivery in April, closed at an all-time high of 110.33 dollars per barrel following another day of volatile price action which saw prices strike a record intraday high of 111.00 dollars.

The frenzied trading saw the April contract close up 41 cents compared with Wednesday's closing level.

Traders said a weakening dollar has also stoked a surge in crude oil prices as purchasers with stronger currencies have bought up increased oil supplies.

Supply constraints and booming oil demand from growing economies such as China and India have also bolstered prices to all-time peaks.

Some market analysts said accelerating prices and mounting speculation had created a price bubble that could burst soon, especially as the northern hemisphere winter draws to a close.

"And at some point, oil will disconnect as rising supply and slowing demand start to fall. Oil is in a bubble," said Phil Flynn, a market analyst at Alaron Trading.

Oil prices have also rocketed higher despite increased concerns about a potential US recession which some economists say could spark a shortfall in demand from the world's biggest oil importer.