Low dollar pushes NYMEX crude near $102/bbl

28 February 2008 16:30  [Source: ICIS news]

LONDON (ICIS news)--NYMEX light sweet crude futures gained more than $2/bbl on Thursday to take the front-month April contract close to $102/bbl on the back of a weak US dollar.

By 16:05 GMT, April NYMEX crude had hit a high of $101.88/bbl, a gain of $2.24/bbl from the Wednesday close of $99.64/bbl, before easing back to around $100.70/bbl.

At the same time, April Brent crude on ICE Futures was trading around $100.15/bbl, having hit a high of $100.29/bbl, a gain of $2.02/bbl from the previous close.

This latest surge was mainly due to the US dollar falling to record lows versus the euro on the back of expectations that the Federal Reserve was likely to cut interest rates in March.

These market expectations were further fuelled by another set of negative job data out of the US which highlighted concerns over the economic health of the world’s biggest consumer of crude oil.

Prices had earlier moved further down after Wednesday’s weekly US statistics showed a larger than anticipated build on crude stocks, plus a much larger than expected build on gasoline stocks, which are now at the highest levels for 14 years.

The US statistics had wiped out the gains posted early on Tuesday, which saw April NYMEX crude hitting a new front-month record high of $102.08/bbl, while at the same time April Brent also set a new record at $100.53/bbl.

By: Tony Dillon
+44 20 8652 3214

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