NYMEX crude falls back on profit-taking after record hit

NEW YORK, March 13 (Reuters) - U.S. crude oil futures backed down from the new high at $111 on Thursday as traders booked profits following a record run for seven straight sessions, traders said.

But the weakness of the dollar remains in focus, as any further drop from record lows could prompt more buying from speculators seeking investment alternatives, they added.

On the New York Mercantile Exchange at 1:20 p.m. EDT (1720 GMT), April crude CLJ8 was down 77 cents or 0.7 percent at $109.15 a barrel, trading from $109.08 to $111.

"As we've seen before, following a run-up to record highs, prices back down on some profit-taking as the market consolidates, but after a while the market goes back to its bullish trend," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

"The relation between the weak dollar and strong crude continues to dictate price direction at the moment and people are not trading on economic fears," he said.

Ritterbusch said he would look for any slump in the diesel market as an indication that energy traders are beginning to look for economic weakness for price guidance, "but so far, the diesel market is strong."

In London, April Brent crude LCOJ8 was up 6 cents or 0.05 percent at $106.33 a barrel, trading $105.56 to a record $107.88. The April Brent contract expires on Friday.

The dollar plunged below 100 yen for the first time since 1995 and hit a record low against the euro as worries deepened on Wall Street that the U.S. had entered a recession. [USD/]

The dollar also hit a record low against a basket of major currencies .DXY. Data showing U.S. retail sales fell unexpectedly last month added to the concerns about the economy. For details, see [ID:nN13283833].