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The WSJ reports that oil is at an all-time high even after adjusting for inflation.

Crude-oil futures have topped the inflation-adjusted high set in April 1980, as the dollar's descent continues to send investors into the commodities markets.

Light, sweet crude for April delivery traded as high as $103.95 a barrel on the New York Mercantile Exchange, topping a 1980 trade of $103.76 in 2008 dollars. The April contract recently traded at $103.59. Brent crude on the ICE futures exchange was trading up $1.72 at $101.82.

The 1980 record predates the creation of the crude futures market on Nymex, and represents a deal on the cash market.

Oil began to take off Monday morning after the U.S. dollar fell from a stable position overnight against the euro. Shortly after 9 a.m. EST, the dollar hit a new low, and oil began to rise rapidly. A fresh record for crude in real dollars came minutes later, and deals above the 1980 high were completed at about 9:55 a.m. EST.

"It doesn't look like it's going to come down anytime soon," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

Posted by edelfenbein at March 3, 2008 1:00 PM