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Oil prices hit a six-month high

12 May 2009 15:59 (UTC +04:00)

Bakuâ€“ APA-Economics. Oil prices rose sharply on Tuesday, with the New York contract hitting a six-month high above 60 dollars as the US currency tumbled against other leading units, traders said.
New York’s main futures contract, light sweet crude for delivery in June, jumped to 60.08 dollars per barrel, its highest point since mid-November before slipping back to 59.59 dollars, up 1.09 dollars on Monday’s close.
Brent North Sea crude for June rose 88 cents to 58.36 dollars.
The gains came as the euro soared to 1.3707 dollars, its highest level for one and a half months. A weak dollar stimulates demand for dollar-priced crude because it becomes cheaper for buyers using stronger currencies.
Oil prices have found support in recent days from rallying stock markets and a falling dollar rather than from signs of rebounding demand for energy, according to analysts.
OPEC secretary general Abdalla Salem El-Badri said recently that the cartel wants to see crude at more than 70 dollars as its members appeared divided on whether to further reduce output to support prices.
The Organization of Petroleum Exporting Countries pumps about 40 percent of world crude and its members have seen their incomes slide over the past year as the price of oil has slumped from record highs above 147 dollars.