SINGAPORE, March 17, 2008 (AFP) - Oil prices soared to new highs above 111 dollars in Asian trading Monday as the US currency slumped to another fresh low against the euro, dealers said.

New York's main contract, light sweet crude for April delivery, briefly traded at a new high of 111.42 dollars before easing to 111.08.

New York oil prices closed Friday at 110.21 dollars at the end of US trading hours, a day after hitting 111 dollars for the first time in its history.

'The US dollar's weakness remained a supportive factor for the oil price in US dollar terms,' said David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney.

Brent North Sea crude for May delivery was up 80 cents to 107 dollars. The April contract expired Friday at 107.54 dollars.

Oil prices are likely to trend higher after the euro rose to a fresh high above 1.59 dollars Monday for the first time, while the US unit dropped below 96 yen to a new 12-year low.

'We can continue to expect strong prices for oil and commodities like gold in the near term,' said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

The record-breaking spree in recent weeks was fuelled by investors rushing into commodities including oil, which they see as a safe haven amid rising concerns over the US economy and financial turmoil from a credit squeeze.

The ailing greenback has helped drive up oil prices because crude is priced in dollars and becomes more affordable for purchasers holding stronger currencies.

Investors view oil futures as a hedge against inflation and the weak dollar.

Oil prices have rocketed by 90 percent over the past year as the market was driven by tight supplies, geopolitical concerns in key producer nations and fierce demand for crude from China and India.

Prices have gained about nine percent in value since the start of 2008, accelerating after the OPEC oil cartel held output at current levels at a meeting in early March.