(LONDON) - World oil prices surged more than 3.0 dollars and came close to a record peak Wednesday in the face of sliding US crude stockpiles, the plunging US dollar and after OPEC decided to maintain output levels, traders said.

Strong support came from the European single currency, which struck 1.53 dollars for the first time, a jump that sent the price of gold to a historic 990.53 dollars per ounce in London.

New York's main oil contract, light sweet crude for delivery in April leapt 3.86 dollars to 103.38 dollars per barrel. It earlier spiked to 103.47, close to the record high 103.95 that was hit on Monday.

Elsewhere on Wednesday, Brent North Sea crude for April delivery soared 3.25 dollars to 100.77 dollars a barrel.

The US Department of Energy revealed Wednesday that American crude inventories tumbled by 3.1 million barrels last week. That confounded market expectations for a rise of 2.4 million barrels and was the first weekly drop for one and a half months.

In addition, oil climbed on the back of the weak US currency, because it encourages demand for dollar-priced commodities which become cheaper for buyers with stronger currencies, traders said.

In Vienna, ministers from the Organisation of Petroleum Exporting Countries delivered a snub to US President George W. Bush when they agreed to maintain a daily production quota at 29.67 million barrels of oil.

OPEC, which supplies about 40 percent of the world's crude oil, said it was pumping adequate crude amounts and insisted it was not responsible for record high oil prices of more 100 dollars per barrel.

"The Conference observed that the market is well-supplied, with current commercial oil stocks standing above their five-year average," OPEC said in a final communique.

"The Conference further noted, with concern, that the current price environment does not reflect market fundamentals (of supply and demand), as crude oil prices are being strongly influenced by the weakness in the US dollar, rising inflation and significant flow of funds into the commodities market," it added.

On Monday, oil prices rocketed to fresh all-time peaks above 100 dollars per barrel in both London and New York, as the market was boosted by the flagging US currency.

President Bush, whose country is the world's biggest energy consumer, had said on Tuesday that it would be a "mistake" for the Organisation of Petroleum Exporting Countries not to hike production.

"I think it's a mistake to have your biggest customer economy slow down, or your biggest customers' economy slowing down, as a result of high energy prices," Bush said Tuesday as he met with Jordan's King Abdullah II.

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