Mumbai: Crude oil surged more than $2 to a record $119.90 a barrel in New York today as the dollar dropped to an all-time low against the dollar, prompting investments in commodities as a hedge.

Crude prices gained as the euro climbed to $1.60 for the first time after European Central Bank signalled an interest rate hike to rein in inflation.

US light sweet crude hit an all-time high of $119.90 and was up $1.49 at $119.06 a barrel by 2:25 pm EDT (1825 GMT). The May contract settled at $119.37 a barrel, up $1.89, or 1.6 per cent, on the New York Mercantile Exchange.

London Brent crude, which hit a record $116.75, was trading $1.42 higher at $115.85 a barrel. June Brent contract on the London ICE futures exchange settled at a record $115.95 a barrel, up $1.52.

May gasoline futures on the Nymex rose 3.73 cents to settle at $3.0164 a gallon after earlier rising to a trading record of $3.025, while May heating oil futures rose 0.55 cent to $3.3169 a gallon, down from an earlier high of $3.35.

Crude is now nearly double its closing price a year ago, and up 24 per cent in 2008 alone.

The latest rally has also been aided by interruptions in Nigerian and North Sea supplies and a planned strike in some British refineries.

China also is reported to have made record oil imports last month. China imported an average 4.09 million barrels a day of crude oil last month, final data from its General Administration of Customs showed.