Oil eases from record high over 115

An unexpected fall in gasoline inventories in the United States, the world8217;s largest energy consumer, was the trigger for this week8217;s price rise ahead of peak summer driving demand.

The long-term drivers for investment in the oil market remain unchanged 8212; tight spare capacity on the global crude market, slow output growth from non-OPEC producers and robust demand from emerging economies is more than compensating for declining demand from industrial nations.

8220;Market balances continue to look tight, owing to persistent poor non-OPEC production growth and steady demand increased. On the demand side Chinese consumption is improving, more than making up for weak OECD demand,8221; said Barclays Capital.

Data from China this week showed continued large import volumes of distillates to meet domestic demand, further tightening global supplies of diesel and heating fuels.

8220;Oil demand in the U.S is on a subdued trend but trade data showed strong Chinese imports of crude and oil products,8221; said David Moore, commodities strategist at Commonwealth Bank of Australia.

Oil8217;s record run comes as the flow of investment across commodities shows no sign of abating. U.S. rice futures extended record highs on Friday and corn was nearing its high. Tin also set a new record this week of 21,750 a tonne.

Also lending support to commodities is the continued decline of the U.S. dollar, making dollar-denominated commodities easier to afford for holders of other currencies and providing a hedge for those holding dollar reserves against dollar depreciation.

The euro approached another record high against on Friday the dollar fell against euro and the yen on Thursday and it was steadying on Friday.