Oil prices change a little over $60

Oil prices change a little over $60
# 22 May 2009 08:10 (UTC +04:00)
Baku– APA-Economics. Crude oil rose in New York, poised for a 9.2 percent gain this week, as investors bought commodity futures as a hedge against inflation as the dollar fell to a four-month low against the euro.

Crude oil for July delivery rose as much as 68 cents, or 1.1 percent, to $61.73 a barrel in electronic trading on the New York Mercantile Exchange.

Yesterday, the contract declined 99 cents, or 1.6 percent, to settle at $61.05 a barrel. The oil price dropped along with equities, with the Standard & Poor’s 500 Index slipping 1.7 percent and the Dow Jones Industrial Average sinking 1.5 percent.

Demand for commodities as an alternative investment increases as the dollar drops as oil and gold hold their value against the falling currency. The dollar declined to $1.3930 per euro as of 12:45 p.m. in Tokyo, after reaching $1.3955, the lowest since Jan. 5. Crude oil’s price has an 80 percent correlation with the decline in the dollar against the euro since the beginning of the year, according to Bloomberg data.

Brent crude for July settlement rose as much as 71 cents, or 1.2 percent, to $60.64 a barrel on London’s ICE Futures Europe exchange. It was at $60.59 a barrel at 1:30 p.m. Singapore time.
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