NEW YORK : Oil prices on Thursday set a new high for the year, buoyed by a
weaker dollar and the first drop in unemployment since January. Benchmark
crude for July delivery was up $2.69 to settle at $68.81 a barrel on the New
York Mercantile Exchange. Oil climbed as high as $69.60 earlier in the day.

In London, Brent prices rose $2.83 to settle at $68.71 a barrel on the ICE
Futures exchange.

Oil prices have rallied for three months, and they soared this week to their
highest levels since November. Crude now fetches nearly twice its February
price, mostly on the expectation that the dismal U.S. economy could be
stabilizing.

Goldman Sachs boosted its forecast for benchmark crude based on expectations
that the economy will stabilize and OPEC production cuts will shrink global
supplies. It now expects oil to cost $85 a barrel by the end of the year, up
from its previous estimate of $65 a barrel.

Nevertheless, experts say the market is filled with more enthusiasm than is
warranted by the huge surplus of petroleum in the U.S.

YellowBrix *6/5/2009 1:46:29 PM GMT*
Regards
Sagar

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