Mumbai: Crude oil surged to a new peak above $115 a barrel amidst a fall in gasoline inventories with the US, the world's largest consumer, and record purchases by emerging economic giants led by China and India.

US light sweet crude rose to a record $115.45 a barrel after trading at $115.08 in early morning trade on the New York Mercantile Exchange. It settled up $1.14 at $114.93 a barrel. North Sea Brent crude also rose $1.08 to settle at $112.66 a barrel, off an all-time peak of $113.29 hit earlier.

The US energy department reported a 2.3 million barrels fall in its crude stock and a five million barrels drop in its gasoline stock in the week ended April 11.

US refiners also cut plant runs to 81.4 per cent of capacity - the lowest level since October 2005 after hurricanes flooded Gulf Coast plants - as high crude prices hit margins.

The spike was also aided by huge purchases of distillates, such as diesel and gas oil, into a sixth-straight month, by China's top refiners.

PetroChina, China's second largest refiner, has bought 300,000 tonnes of gas oil for May, traders said.

US gasoline demand has been hit by surging fuel costs and analysts expect record retail prices for US consumers this summer.

The slumping US dollar, which hit new lows against the European common currency, the euro, also supported oil's record rally by boosting non-US spending power.
  
The euro hit a record high near $1.60 against the US currency, supported by views that the European Central Bank is unlikely to cut rates soon.

The dollar was weighed down by slowing economic growth due to credit problems and a limping housing market and the likelihood of further rate cuts by the US Federal Reserve.

Oil has gained nearly 20 per cent since the beginning of this year, US government data showed. Prices have quintupled since 2002 as surging demand, particularly from developing Asian economies like China, outpaced new supply.