Crude-oil futures hit an all-time, inflation-adjusted high above $103.76 a barrel on Monday. Light, sweet crude for April delivery was recently up $2.08 at $103.92 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange was trading up 70 cents at $100.80.

Speculators have flocked to crude as the U.S. dollar has weakened to record lows against the euro, making oil priced in dollars a relative bargain. The euro hit a new high against the dollar Monday.

"Funds are using the market as a safe haven," wrote analysts at TFS Energy Futures. "The fund activity in the market has overpowered fundamental data which should temper these markets."

One real-world event looms large, however: this week's meeting of the Organization of Petroleum Exporting Countries. Members are expected to hold export quotas steady, though the potential for a cut has sent futures higher over the last two weeks.

"The market is coming to terms with the fact that OPEC is probably not going to raise production" despite record prices, said Rick Mueller, director of the oil practice at Energy Security Analysis Inc. in Wakefield, Mass.

Gold Closes In on $1000

Gold futures also rallied, reaching a record high of $992 an ounce Monday, propelled by the dollar's tumble and continuing investment flows into commodities.

"Technical strength, a weak dollar and a continued bid into commodities are spurring gold and oil higher," said Zachary Oxman, a senior trader at Wisdom Financial.

"Long oil and long gold will be the trades of 2008," Mr. Oxman said. "The market is now worried about inflation, slowing consumer spending and the complete degradation of the dollar."

Last week, gold posted a gain of $27.20 an ounce. The metal surged 5% over February and is up more than 15% in the year to date.

"Despite remaining vulnerable to long liquidation, particularly should the dollar recover, it seems investors are still keen to enter the market with gold now well placed to challenge the psychological $1,000-an-ounce mark," said James Moore, analyst at TheBullionDesk.com, in a note.