June 27 (Bloomberg) -- Crude oil rose to a record above $142 a barrel in New York and gold advanced as falling stock markets spurred investment in commodities.

Oil has gained 47 percent this year, headed for the biggest six-month gain since 1999, as recession concerns have pushed the MSCI World Index of global equity markets down 12 percent. Oil may rise further if the European Central Bank boosts rates on July 3, further weakening the U.S. dollar, traders said.

``It's a combination of equities underperforming and pricing in some further risk on what the ECB will do next week,'' said Oliver Jakob, managing director of Petromatrix GmbH in Zug, Switzerland. ``Funds don't realize the size of movement they can create in these low volumes.''

Crude oil for August delivery rose as much as $2.62 a barrel, or 1.9 percent, to $142.26 in electronic trading on the New York Mercantile Exchange. It was at $140.89 at 1:33 p.m. London time.

Yesterday, the contract rose $5.09, or 3.8 percent, to $139.64 a barrel, a record settlement price, as Libya threatened to cut output and OPEC's president said prices may reach between $150 and $170 within months.

Many of the companies most reliant on oil, such as airlines and refiners are having to buy futures now after waiting earlier in the year in the expectation of lower prices, said Gerrit Zambo, an oil trader for BayernLB in Munich.

``In the first months of this year consumers were waiting, but now they've reached a painful limit and have no choice but to hedge,'' Zambo said. ``The costs put so much pressure on the companies and they have no choice.''

Asian Blessing

The doubling of prices in the last year is ``a blessing in disguise'' for Asian economies and currencies, according to Stephen Jen, chief currency strategist at Morgan Stanley in London. High transport costs will force the region to become less reliant on exports and more on local demand, Jen said in a report yesterday.

Gasoline for July delivery rose 0.5 cent to $3.528 a gallon in New York as of 12 p.m. London time. Futures reached a record $3.5762 a gallon on June 16.

The UBS Bloomberg Constant Maturity Commodity Index, which tracks 26 raw materials rose 0.9 percent to a record 1681.39 today. Corn reached a record today, and rubber advanced to a 28- year high.

Gold headed for a second weekly gain as the dollar weakened, boosting the appeal of the metal as a hedge against inflation and an alternative investment to the U.S. currency. Gold for immediate delivery rose $2.93, or 0.3 percent, to $920.23 an ounce as of 1:26 a.m. in London.

The MSCI World Index lost 1.8 percent to 1,403.36 at 1:27 p.m. in London as 8 of the 10 industry groups retreated.

Trichet Speaks

ECB President Jean-Claude Trichet reiterated in a June 25 speech that policy makers may increase the main refinancing rate by a quarter-percentage point next month to contain inflation.

The U.S. dollar was 0.2 percent lower at $1.5757 against the euro, and 0.6 percent weaker versus the Japanese currency at 106.33 per yen at 11:37 a.m. London time.

Brent crude oil rose as much as $2.30, or 1.6 percent, to a record $142.13 on London's ICE Futures Europe exchange. The contract traded at $141.25 a barrel at 1:26 p.m.

To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net

Last Updated: June 27, 2008 08:35 EDT