(Xinhua)
Updated: 2008-03-13 09:20

VIENNA - OPEC's daily average oil prices have hit US$100 for the first time, the Vienna-based cartel said Wednesday.

A diesel fuel pump is seen at a filling station in London on March 4, 2008. [Agencies]

The Organization of Oil Exporting Countries' basket of 13 crudes rose to US$100.57 a barrel Tuesday from 99.48 dollars the previous day.

OPEC President Chakib Khelil has said oil prices will remain at high levels for the rest of this year due to speculation and geopolitical tensions, news reports said.

However, prices could ease in 2009 with a recovery of the weakening dollar following the US presidential election and fundamentals reasserting themselves as major market forces, he said.

Each OPEC member has a production quota to limit their output level negotiated by ministers of the bloc.

OPEC has resisted pressure from the US to boost production, and most recently rejected calls for an output increase at its Vienna meeting last week.

In Asian trade Wednesday, the New York benchmark price was close to its record of nearly 110 dollars, bolstered by the US dollar's dive to a new low against the euro.

London's benchmark crude for April delivery was below 105 dollars, close to its record of 105.82 set Tuesday.

The dollar soared against the yen and rebounded against the euro, which hit an all-time high against the US dollar earlier Tuesday.

The dollar's weakness is reflected in expectations of more interest cuts by the Federal Reserve to boost the sluggish US economy.