Oil prices surged to a record 89.47 dollars on Thursday as the falling dollar drew new foreign investors and speculators to dollar-denominated energy futures.

Crude for November delivery finished up 2.07 dollars at 89.47 dollars a barrel on the New York Mercantile Exchange, after reaching a new all-time trading high of 89.78 dollars.

The dollar sank to new historical lows against the euro after a jump in weekly jobless claims and as Bank of America's disappointing third-quarter results revived concerns about the impact of the credit crisis.

Traders also eyed Northern Iraq, after the Turkish parliament on Wednesday authorized military incursions to hunt down Kurdish rebels.