Will the suspect Dollar lend price support for oil and gold?
*AP, by George Jahn, March 15, 2008
“Oil Pushes to New High Above $113
Oil prices rose to new heights Tuesday, surging to almost $114 a barrel after the U.S. dollar fell and worries mounted about the global oil supply.
A report from the International Energy Agency said Russian oil production dropped this year for the first time in a decade. Crude oil shipments along one U.S. pipeline were said to be moving below capacity. And Italy’s ENI reported a 5,000 barrel per day reduction in production at one of its facilities in Nigeria.
Light, sweet crude for May delivery on the New York Mercantile Exchange rose as high as $113.66 a barrel by afternoon in Europe before backing off. That was $1.45 above the previous record set last week.
The contract closed at a record settlement price of $111.76 a barrel on Monday.
The recent run above $100 a barrel has been largely attributed to a steadily depreciating U.S. currency because a weakening dollar prompts investors to seek a safe haven in hard commodities such as oil and gold.”
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