Oil strikes new record above $110

The cost of petrol is soaring around the world as oil prices rise

The price of crude oil has set a fresh record for a sixth consecutive day, hitting $110.20 as a falling dollar encouraged buying.

New York light sweet crude later fell to close at $109.92, while London's Brent also struck a new high at $106.41, before slipping to $106.27.

The dollar hit a record low against the euro, and investors are buying oil to hedge against the sliding greenback.

Rising demand for oil from booming economies has also helped the rally.

"The crude oil uptrend is so strong it will not die easily," said Tom Bentz, an analyst at BNP Paribas Commodity Futures.

The move higher came despite US government data that showed stocks of crude and gasoline rose last week by a larger margin than expected.

At the same time as rising demand, the Opec group of oil producing nations have opted to keep output unchanged, keeping crude supplies tight.