Fluctuating dollar and hostile environment in the Middle East including political instability in North Africa added to the worries of the traders taking oil prices up by jump of 33% since February to $112 a barrel on Monday.

During the late afternoon trading on the New York Mercantile Exchange, the prices of the crude for the May delivery slipped by 42 cents from $112.79, highest since September 2008, to $112.37 per barrel.

In middle east Asia, firing of 120 rockets and mortar shells by Palestine into southern Israel has once again intensified the violence between the two countries while in northern Africa, the Egyptian soldiers assaulted the protestors and killed one, who were demanding the investigation for the embezzlement of funds by former President Hosni Mubarak.

On Monday, the euro slipped slightly to $1.4457 from $1.4483 of late Friday.

Jeffrey Morrison of MFS Investment Management asserted, "The rise in the price of oil in reaction to the spreading of unrest from Tunisia and Egypt to Libya and Bahrain remains below the threshold that is likely to have lasting impact on the global economy."

The U.S. dollar fell to a 15-month low against the euro, thus making the dollar based commodities cheaper for the euro based investors.

South African President Jacob Zuma quoted that Muammar Gaddafi's and his supporters have accepted the African Union peace plan to end the hostile environment in the North Africa.