Oil prices have risen yet further in Friday trading, touching another all-time high as a result of strong demand and continuing dollar weakness.

A barrel of US light crude touched $103.05, before edging back in Europe to trade at $102.05. On Thursday, it had closed at $102.59 a barrel.

London Brent crude fell 65 cents to trade at $100.25 a barrel.

Demand for oil and other commodities is high among investors because of fears of a recession in the US.

The weak dollar also makes oil a cheaper investment for holders of other currencies.

'Inflation fears'

"The fresh record prices coincides with the flow of investor money into commodities, due to the weak US dollar and the increasing threats of inflation in the US," said Victor Shum, senior principal at Purvin and Gertz energy consultants in Singapore.

A Nigerian government official said that if oil prices remained around record highs, producers' cartel Opec was unlikely to reduce output at its meeting next week.

Fears over the US economy have grown further after Federal Reserve boss Ben Bernanke said on Thursday that maintaining growth was becoming more difficult.

Mr Bernanke said the Fed's job of encouraging growth was harder than in 2001, when the US suffered a recession, because of rising inflation and energy prices.