|
|
Published June 16, 2009 10:17 am -
Oil back above $72 as dollar slumps
Oil prices rose back above $72 a barrel today as investors picked up commodities after the U.S. dollar slumped on comments by Russian President Medvedev, who said the world needed new reserve currencies.
Benchmark crude for July delivery was up $1.74 to $72.36 a barrel by mid-afternoon in Europe in electronic trading on the New York Mercantile Exchange. On Monday, it fell $1.42 to settle at $70.62
Medvedev’s comments, which included the suggestion that Russia and China invest some of their reserves in each other’s debt instead of buying only U.S. Treasuries, helped the euro rise against the dollar to $1.3895 on Tuesday from 1.3788 on Monday. The British pound rose to $1.6453 from $1.6342.
The dollar and oil typically trade inversely as investors buy commodities to protect themselves from the inflation risks posed by a weak U.S. currency.
“Unfortunately, the energy markets have been hijacked, again, by currency transactions,” U.S. energy consultancy Cameron Hanover said in a research note. “The future course of the U.S. dollar currently trumps long-standing fundamental factors like inventories, refinery output, OPEC and refined products demand.”
Oil has doubled in value since March on expectations the worst of the global economic slowdown is over.
But bad economic news could puncture investor optimism. An index of New York manufacturing released by the Federal Reserve Bank of New York on Monday indicated that demand weakened in June.
The Standard & Poor’s 500 index, which had risen 40 percent since March 9, dropped 2.4 percent Monday.
“I wouldn’t be surprised if oil goes back to the low $60” level, said Clarence Chu, a trader at market maker Hudson Capital Energy in Singapore. “The rally hasn’t been driven by fundamentals, which are still pretty weak.”
Wednesday’s release of petroleum inventory data from the Energy Department’s Energy Information Administration could provide some insight about crude demand. Analysts expect a drawdown of 1.7 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Stocks have fallen for several weeks, but are still near 19-year highs.
In other Nymex trading, gasoline for July delivery rose 3.81 cents to $2.0911 a gallon and heating oil gained 4.73 cents to $1.8629. Natural gas for July delivery jumped 14.1 cents to $4.323 per 1,000 cubic feet.
In London, Brent prices rose $1.64 to settle at $71.88 a barrel on the ICE Futures exchange.
•
Click to discuss this story with other readers on our forums.
|
|
Announcements



: Special Offer For New Subscribers
:


 |
|
TRUCK DRIVERS NEEDED
for local construction project, must have CDL and experience on construction site belly dumps. 417-206-0930....>MORE
See all ads |
|
2005 FORD FOCUS
4 cylinder, 5 speed, 134,000 miles, $3495. 417-434-0925...>MORE
HONDA 2001 CIVIC EX
HONDA, 2001 Civic EX, 4 door, automatic, 94,000 miles, $5800; 1998 Accord, 4 door, $4200; 1999 Honda Prelude, automatic...>MORE
OLDSMOBILE 2003 SILHOUETTE VAN
OLDSMOBILE, 2003 Silhouette mini van, 107,000 miles, scooter/wheelchair hoist, nice, $7000. (417)776-3219....>MORE
1999 CADILLAC SEDAN DEVILLE
Delegance, Michelin tires, Northstar, vinyl top, loaded, $3900/or offer. (417)850-0731....>MORE
1989 CHEVROLET STEPSIDE
350, V8, custom flames, runs great, $2500. 417-208-6717...>MORE
JEEP 2000 CHEROKEE SPORT
JEEP, 2000 Cherokee Sport, 6 1/2” lift, 35” foggers, locked front end, welded rear end, off road use, winch not included...>MORE
TOYOTA 2004 TACOMA PRERUNNER
Toyota, 2004 Tacoma Prerunner, TRD off road, double cab, V6, new tires, CD, bed liner, lid cover, 100,000 miles, excelle...>MORE
2002 KIA OPTIMA EX
4 door, sharp, loaded, leather, CD, sunroof, extra nice, $3200. 1317 Schifferdecker, Joplin....>MORE
HONDA, 2007 FIT SPORT,
customized interior package, automatic, air, AM/FM/CD, cruise, great mpg, low miles, excellent condition, $11,800. (417)...>MORE
1999 FORD EXPLORER LIMITED
4x4, leather loaded, $3500. 417-850-0731....>MORE
See all ads |
|
525 E. 41ST, JOPLIN, MO
to be sold at auction December 5th or before. Lovely all red brick home on large corner. 4 bedroom, 2 bath, double...>MORE
Deerfield Estates
in Carl Junction, prime building sites, reduced $10,000 each. 417-825-0052...>MORE
3 ACRES
3 ACRES more/less with pond. Nice park-like setting, just minutes from Range Line. Close to area of newer homes. $19,900...>MORE
NEWER 3 BR/2 BA
Lots of upgrades and great location. $149,000 but all offers considered. 903 Katlin, Carl Junction. Pictures www.fsboloc...>MORE
See all ads |
|
ANTIQUES FOR SALE
blue sette $350 2 lamps $75 coffee table $35 2 half side tables $35 2 mauve 60's chairs $225 will e-mail photos. 417-673...>MORE
ENGLISH BULLDOG PUPPY
male, AKC, fawn/white, champion bloodlines, $900 or best offer. (417)396-3340...>MORE
MALTESE PUPPIES
2 gorgeous AKC males, 8 weeks on 11/30, all shots/vaccines, $200 each. 417-325-4340 ...>MORE
INDIAN HEAD PENNIES
INDIAN HEAD PENNIES, 35% Civil War II nickels, V nickels, Buffalo nickels, lots of other coins. Garage full of antiques ...>MORE
POODLE, FULL BLOODED
POODLE, full blooded, $75 or best offer. (417)385-8710 after 4:30 p.m....>MORE
ANGUS HEIFERS
6 Augus heifers, good foundation stock. (417)358-7519...>MORE
MALTESE PUPPIES ADORABLE!!
6 weeks old Thanksgiving. 2 boys and 2 girls. Shots, wormed, and vet checked. Healthy, active, and loved! Great Ch...>MORE
DIAMOND SOLITAIRE
Pear-shaped, one carat, diamond solitaire in gold setting. $2,000. Please call 417-825-3238...>MORE
YORKIES
12 weeks old, 2 males, AKC, 1st shots, $175. 417-291-6590, Webb City...>MORE
NEW IN BOX
New in box, Lucchese cowboy boots, black, size 9D, $200. (620)231-9256...>MORE
See all ads |
|
 |
|