Crude prices close in on $75 per barrel because of the weakening US dollar
* On 11:12 am EDT, Tuesday October 13, 2009
NEW YORK (AP) -- Oil prices neared new highs for the year Tuesday as the
dollar slipped against other major currencies, demonstrating how much the
weakened U.S. currency can affect consumers globally.
The U.S. dollar index, where the U.S. currency is measured against other
major currencies, hit a 14-month low Tuesday. Because crude is bought and
sold in dollars, it essentially becomes cheaper for international investors
who have flooded into energy markets despite a big surplus of oil.
Energy experts expect the government will report Wednesday that crude
supplies are still growing, but that does not appear to be a deterrent for
many investors because the dollar is so weak.
Benchmark crude for November delivery gained 62 cents to $73.89 on the New
York Mercantile Exchange. At one point, prices reached $74.47, just short of
the yearly high of $75 reached on Aug. 25, when the driving season was still
in full swing.
Prices have now risen for four straight days and a barrel cost 4 percent
more than it did one week ago.
Natural gas, which is not sold only in dollars, tumbled 25.7 cents to $4.623
per 1,000 cubic feet on Nymex.
Crude has traded between $65 and $75 for months as traders look for signs of
an economic recovery.
On Tuesday, OPEC said China and other developing countries would push global
oil demand up slightly next year, but said any recovery would be "slow and
weak."
The Organization of Petroleum Exporting Countries supplies over 35 percent
of the world's crude.
"Given the recent improvement in the economic performance of OECD and China,
oil demand is expected to be better than earlier forecast," OPEC said,
referring to the Organization for Economic Cooperation and Development, a
rich nations club.
In other Nymex trading, heating oil rose 2 cents to $1.9149 a gallon, and
gasoline for November delivery gained 2.2 cents to $1.821 a gallon.
In London, Brent crude rose 51 cents to $71.87 on the ICE Futures exchange.
Associated Press Writers Alex Kennedy in Singapore, Pablo Gorondi in
Budapest, Hungary, and Tarek El-Tablawy in Cairo contributed to this report.
Sumber : Yahoo
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