The Joplin Globe, Joplin, MO

Business

November 9, 2009

<img src=" http://www.joplinglobeonline.com/images/zope/monday.gif" border=0> Oil prices near $79 on US hurricane, weaker dollar

Oil prices climbed toward $79 a barrel Monday as Hurricane Ida threatened oil installations in the Gulf of Mexico and the dollar weakened against other currencies.

By early afternoon in Europe, benchmark crude for December delivery was up $1.17 to $78.60 a barrel in electronic trading on the New York Mercantile Exchange.

Ida, the first Atlantic hurricane to approach the United States this year, headed toward the Gulf Coast on Monday with 105 mph (169 kph) winds, and could make landfall as early as Tuesday.

Crude was also boosted by a falling U.S. dollar, which has moved inversely to oil for months as investors buy commodities as a hedge against inflation and a weaker U.S. currency. Oil rose to $82 last month, its 2009 high, from $32 in December.

The euro rose to $1.4984 in European trading Monday from $1.4885 on Friday and the British pound also rose to $1.6795 from $1.6602. The dollar fell to 89.86 Japanese yen from 89.93 yen.

On Friday, crude fell $2.19 to settle at $77.43 after the U.S. Labor Department said the unemployment rate jumped more than expected in October to 10.2 percent, the highest since 1983.

The dismal jobless data stirred concerns that U.S. consumer demand will remain sluggish despite signs pointing to an economic recovery, while analysts remained skeptical about the rise of oil prices in the past months.

“In the real world there is very little evidence that the underlying market fundamentals, both in the overall economy and more particularly in the oil market, are improving fast enough to justify these price levels,” said analysts at KBC Market Services in Britain.

Investors will be eyeing third-quarter earnings reports this week from retailers such as Wal-Mart Stores Inc., Abercrombie & Fitch Co., Macy’s Inc. and JC Penney Co. for clues about the strength of consumer spending.

In other Nymex trading, heating oil rose 2.90 cents to $2.0325 a gallon. Gasoline for December delivery gained 3.08 cents to $1.9551 a gallon. Natural gas for December delivery lost 2.1 cents to $4.574 per 1,000 cubic feet.

In London, Brent crude for December delivery rose $1.11 to $76.98 on the ICE Futures exchange.

———

Associated Press writer Alex Kennedy in Singapore contributed to this report.

Text Only
Business
Poll

Joplin City Manager Mark Rohr wants the city to distribute weather radios to all Joplin homes that don’t have one. That’s 11,000 radios. Do you think that’s a good use of $300,440?

Yes.
No.
     View Results
Facebook
Facebook
Poll

Joplin City Manager Mark Rohr wants the city to distribute weather radios to all Joplin homes that don’t have one. That’s 11,000 radios. Do you think that’s a good use of $300,440?

Yes.
No.
     View Results
Twitter Updates
Follow us on twitter
Follow me on Twitter
NDN Video
Obama Scraps Birth Control Mandate US Airmen's Killer Sentenced to Life in Germany Raw Video: Deadly Blasts in Syria Romney Slams President Obama at CPAC Gingrich: Pres. Obama 'waging War on Religion' Navy Names Ship for Gabrielle Giffords 5 Killed in Wrong-way Crash on I-10 in La. Denver's Largest-Ever Drug Bust Nets Dozens Marines: No Punishment for Nazi-like Flag Vets Look to Translate Military Skills Into Jobs Raw Video: School Bus Burst Into Flames LA School Reopens Amid Sex Abuse Scandal $25B Settlement Reached Over Foreclosure Abuses Pentagon: Allow Women Closer to Front Lines LA School in Sex Abuse Scandal Reopens Raw Video: Italy's Mount Etna Bursts Into Life Greeks March; Angry Despite Debt Deal Air Force Airlines: Leaders Get Polished Service Ga Girl Fights Off Kidnapper at Walmart Skip the Coffee Cup and Inhale Your Caffeine Fix
House Ads
Local News