Oil prices, hit a new record high today at $108, a new inflation-adjusted record and fifth new high in the last six sessions on an upbeat report on wholesale inventories.

Analysts believe speculative investing attracted by the weak dollar is the primary reason oil has risen in recent months. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.

The dollar fluctuated against the euro on Monday, many investors believe the greenback is likely to keep falling as the Fed continues to cut rates. Many analysts believe the rise in crude prices is not supported by the market's underlying fundamentals, noting that supplies are generally rising while demand is falling.