Crude oil futures closed up 2.72 dollars at a new record closing high of 96.70 dollars a barrel on the New York Mercantile Exchange on Tuesday.

According to forecasts, U.S. crude inventories will fall for a third week.

The dollar touched a new low against the euro, boosting the value of oil as an alternative investment, analysts said.

Crude futures touched a new intraday high of 97.10 a barrel earlier.