Crude gains more than $2/bbl on weak US dollar

06 June 2008 11:08  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude prices climbed by more than $2/bbl on Friday as further weakness in the US dollar triggered a round of speculative buying by funds following on from massive price rises of over $5/bbl the previous day.

 

Further upward pressure was generated by comments from Israeli Transport Minister Shaul Mofaz, who said that an attack on Iran’s nuclear sites appeared unavoidable, given the apparent failure of sanctions.

 

At 09:44 GMT, July NYMEX light sweet crude futures traded at $130.17/bbl, up $2.38/bbl on Thursday’s settlement level. Earlier the contract hit peaked at $130.58/bbl, up $2.79/bbl.

 

At the same time, July Brent on London’s ICE futures was traded at $129.57/bbl, up $2.03/bbl on the previous settlement price. Earlier the contract hit a high of $129.97/bbl, up $2.43/bbl.

 

The fall in the value of the US dollar on Thursday followed comments from the European Central Bank indicating that it might raise euro interest rates.

 

The resultant sharp rise in crude prices cancelled out marked price declines earlier in the week which had resulted from heightened concerns over a slowdown in global demand created by record crude prices.

By: James Dennis
+65 6780 4359

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