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Apr-26-2008Benchmark rises on energy, materials gains(topic overview)
CONTENTS:
- Crude oil rose to a record $119.90 a barrel in New York as the dollar dropped to an all-time low against the euro, prompting investors to purchase commodities as an inflation hedge. (More...)
- May gasoline futures on the Nymex rose 3.73 cents to settle at $3.0164 a gallon after earlier rising to a trading record of $3.025, while May heating oil futures rose 0.55 cent to $3.3169 a gallon, down from an earlier high of $3.35. (More...)
- SAN FRANCISCO (MarketWatch) - Crude-oil futures fell more than $2 a barrel Thursday, pressured by strength in the dollar and data that showed last month's home sales in the U.S. plunged to a 17-year low, strengthening views that the largest oil consuming country is in a recession. (More...)
- The more active June contract, now the front-month, settled at $118.07 a barrel, up $1.44. (More...)
- The euro fell 1% to $1.5733 per dollar at 10:05 a.m. in New York, from $1.5889 yesterday. (More...)
- Some traders are betting that low interest rates, a feeble dollar, and robust demand from China and India will keep demand for energy stoked and prices high. (More...)
- The euro was down a bit against the U.S. dollar, a day after it breached $1.60 to a record high. (More...)
- High oil and natural gas prices pushed ConocoPhillips' first-quarter profits up 17 percent, the Houston-based company said today. (More...)
- Weekly government data showed stockpiles of crude were higher than expected while gasoline stocks fell more than expected. (More...)
- Oil markets continue to be plagued by supply issues: A Royal Dutch Shell PLC joint venture declared a force majeure on April and May oil delivery contracts from a 400,000 bpd Nigerian oil field due to a pipeline attack last week. (More...)
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Crude oil rose to a record $119.90 a barrel in New York as the dollar dropped to an all-time low against the euro, prompting investors to purchase commodities as an inflation hedge. The dollar touched $1.60 per euro for the first time after European Central Bank policy makers signaled they may raise interest rates because of inflation. Oil's 24 percent surge this year has pulled gasoline and diesel fuel to records, weighing on an economy already reeling from a credit crisis. "This market defies gravity,'' said Tom Bentz, a broker at BNP Paribas in New York. [1] Crude oil for June delivery fell as much as $1.55, or 1.3 percent, to $114.51 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $114.66 at 9:21 a.m. London time. The dollar traded at $1.5628 per euro as of 8:39 a.m. in London, from $1.5682 yesterday in New York and $1.5817 on April 18, heading for a gain of 1.3 percent this week.[2] NEW YORK (AP) - Crude oil prices fell more than $2 a barrel as the dollar gained strength against the euro. Light, sweet crude for June delivery stalled in its recent march toward $120 a barrel. It fell $2.24 to settle at $116.06 a barrel on the New York Mercantile Exchange.[3]
Oil futures fell 73 cents or 0.62 percent to $117.34 a barrel on the New York Mercantile Exchange by 11:38 a.m. on Wednesday. Prices of crude have increased above $100 since the beginning of 2008 as demand for commodities such as oil, gold and copper has risen to compensate for inflation caused by losses in the dollar.[4] LONDON (SHARECAST) - Crude oil futures settled 23 cents higher on the New York Mercantile Exchange at $118.30 a barrel.[5]
Crude oil for June delivery fell as much as $1.18, or 1 percent, to $117.12 a barrel in after-hours electronic trading on the New York Mercantile Exchange.[6] Light, sweet crude for June delivery fell 82 cents to $117.48 a barrel in electronic trading by midday in Europe ahead of the opening of the New York Mercantile Exchange.[7] Light, sweet crude for June delivery fell 36 cents to $117.71 in electronic trading on the New York Mercantile Exchange by midday in Europe. The May contract, which expired Tuesday, rose as high as $119.90 in its last trading session and closed at $119.37.[8]
Light, sweet crude for June delivery was up 2.46 U.S. dollars to 118.52 a barrel on the New York Mercantile Exchange after hitting 119.55 dollars. Earlier this week, crude prices rose as high as 119.90 dollars as investors on weak dollar and news of a pipeline attack in Nigeria and a looming refinery strike in Scotland.[9] The report, which was made available to the News Agency of Nigeria (NAN) in New York, also stated that supplies in the U.S. rose by 2.4 million barrels. It said that on the exchange on Thursday morning, the price of crude oil was 117.42 dollars per barrel, after a drop of 88 cents. It also disclosed that heating oil and gasoline prices dropped. Pump prices in parts of the U.S. climed to a record 3.556 per gallon on Wednesday, up from its recent price of 3.533 dollars per gallon.[10]
The U.S. Energy Department's Energy Information Administration reported Wednesday that crude stockpiles grew 2.4 million barrels last week — more than double what analysts expected. "Despite the uptick in refinery demand, crude oil, stocks increased for the first time in three reports," said Stephen Schork in his Schork Report. Still he noted further support for prices in the short term due to an increased "risk factor regarding future supply." Feeding those concerns, about 170,000 barrels a day of Nigerian production remained shut-in following a pipeline attack earlier this week. BP PLC is also considering shutting down its 700,000 barrel-a-day Forties pipeline system if a strike continues at a U.K. refinery.[11] Speculation that surging global food prices may force a rethink on the use of food crops for biofuels, has been a factor in pushing the price of crude oil, close to $120 a barrel this week. Biofuels produced from crops such as corn, which now accounts for 20% of U.S. output and soya are not significant in the fuel market but are seen as a longer term threat. The use of food crops in biofuel production at a time of weather impacts on crop supply in some parts of the world and growing demand in Asia, has pushed commodities such as wheat and rice to a string of record highs.[12]
Oil prices were slightly lower Wednesday after climbing in the previous session to a record near $120 a barrel on the weakening U.S. dollar and concerns about unstable supply amid firm global demand.[8]
NEW YORK: Oil prices climbed to a record level near $120 a barrel on Tuesday mainly due to a fall in U.S. stocks coupled with dollar dropped to an all-time low against the euro.[13] The focus on supply constraints will inevitably lend gravitas to the weekly EIA (US Energy Information Administration) data released this afternoon with all eyes on the gasoline component ahead of the U.S. driving season. Forecasts suggest that the level of gasoline stocks will have fallen for a consecutive sixth week and this should be sufficient to see oil prices breeze through the $120 level. The impetus in the market is sufficient to project a move towards $125/bbl as the bulls clearly have the bit between their teeth and with little prospect of the Dollar recovering any time soon, freah highs beyond this target are very much in prospect. On Tuesday, the euro briefly crossed the $1.60 mark to $1.605 after Bank of France Governor Christian Noyer joined his German counterpart Axel Weber in saying that, far from cutting, the ECB stands ready to raise rates if necessary.[12] Shum said oil prices will find support at the $115 level. In the foreign exchange market on Thursday, the dollar gained in value against the euro amid speculation the U.S. Federal Reserve soon might end its campaign of cutting interest rates.[14] London's Brent North Sea crude for June delivery on Thursday settled $2.12 lower at $114.34 a barrel after earlier hitting a record intraday peak of $116.87. In the foreign exchange market on Thursday, the dollar gained in value against the euro amid speculation the U.S. Federal Reserve soon might end its campaign of cutting interest rates.[15]
Crude for June delivery fell $1.19, or 1%, to $117.13 a barrel on the New York Mercantile Exchange, after hitting a low of $115.55, as a rebound in the dollar offset fears that supply is struggling to keep up with demand.[16] Crude oil for May delivery advanced $1.89, or 1.6 percent, to settle at $119.37 a barrel at 2:43 p.m. on the New York Mercantile Exchange, a record close.[1] Concerns about supply interruptions helped oil futures surge to a high on the New York Mercantile Exchange, the third record in a row. Oil rose $1.89, or 1.6%, to $119.37 a barrel -- up 23% this year.[17]
Security issues in Nigeria and an attack on a Japanese oil tanker had pushed crude oil prices to nearly 118 dollars a barrel on the New York Mercantile Exchange. (NAN).[10] Crude oil for June delivery traded electronically on the New York Mercantile Exchange (Nymex) at $118.02, down 5 cents from Tuesday's close.[12] Light, sweet crude for June delivery was down 70 cents at $117.38 a barrel on the New York Mercantile Exchange.[18] On Apr. 21, the price of a barrel of the benchmark West Texas Intermediate crude for May delivery hit $117.76 on the New York Mercantile Exchange -an all-time high-before settling at $117.46.[19] On the New York Mercantile Exchange at 9:11 a.m. EDT (1311 GMT), June crude CLM8 was up $1.97, or 1.7 percent, at $118.03 a barrel, trading from $114.51 to $118.20.[20] The benchmark contract closed down $2.24 at $116.06 a barrel during floor trading on Thursday at the New York Mercantile Exchange.[14] The May contract settled at $119.37 a barrel, up $1.89, or 1.6 per cent, on the New York Mercantile Exchange.[21]
New York's main oil futures contract, light sweet crude for delivery in June, slid 46 cents to $115.60 per barrel.[15] Gasoline futures for May delivery jumped 3.73 cents, or 1.3 percent, to close at a record $3.0164 a gallon in New York after reaching an intraday record of $3.025 a barrel.[1]
Mumbai: Crude oil surged more than $2 to a record $119.90 a barrel in New York today as the dollar dropped to an all-time low against the dollar, prompting investments in commodities as a hedge.[21] NEW YORK - Crude oil fell more than $2 on Thursday as the dollar gained, lessening demand for commodities and prompting profit taking sales.[22] April 24 (Bloomberg) -- Crude oil fell for a second day in New York after the dollar rose against the euro, reducing the appeal of commodities to investors, and a government report yesterday showed U.S. stockpiles increased more than expected.[6] NEW YORK, April 25 (Reuters) - U.S. crude oil futures rose sharply on Friday as supply snags in Nigeria and Britain offset the effect of a stronger dollar.[20] NEW YORK, April 23 (Xinhua) -- Crude oil futures rose slightly Wednesday on tight supply concerns.[23]
May gasoline futures on the Nymex rose 3.73 cents to settle at $3.0164 a gallon after earlier rising to a trading record of $3.025, while May heating oil futures rose 0.55 cent to $3.3169 a gallon, down from an earlier high of $3.35. Crude is now nearly double its closing price a year ago, and up 24 per cent in 2008 alone. [21] On Apr. 22, crude hit yet another all-time high of $118.05 in electronic trading before retreating slightly. Oil prices are up 23% so far this year, and 16% in April alone. Those prices in the futures market are hitting consumers in the here and now, rippling through everything from gasoline to food to home heating fuel.[19]
Brent Crude was trading at $113.92 up $1.49 on London's ICE Futures Market. As crude prices become increasingly extortionate ' even criminal, it is important to remember that once crude stockpiles bought in at lower prices are depleted and prices for hydrocarbons products increase significantly, demand will go sharply down because people won't be able to afford filling up their tanks. Even essential journeys will be kept to a minimum and people will opt for holidays at home rather than taking their vehicles on the road for pleasure. This drive season will be an important indicator about the economy as people are made redundant and have to cut back. As the price of oil climbs to $117 a barrel and petrol at the pump reaches 110p a litre, motorists are wondering how long this latest spike is going to last.[24] Some analysts say oil's sharp climb will only lead to a sharp and painful correction. As inflation causes consumer spending to slow, and endangers industries from airlines to trucking-at a time when the economy is weak anyway-it's logical demand for oil-based products will fall. It wouldn't be the first time: Crude prices more than doubled in four months during 1990, after Iraq invaded Kuwait, to more than $32 a barrel.[19] Crude prices gained as the euro climbed to $1.60 for the first time after European Central Bank signalled an interest rate hike to rein in inflation.[21]
Analysts say a complex mix of factors-from low interest rates to the sagging dollar to the faltering economy-is behind the oil price hike. They don't expect a letup any time soon. "This isn't an issue of supply and demand," says Joel Fingerman, principal of Chicago-based Oil Analytics, an energy consulting firm. "This is about money flow. It could stop here or at $150."[19] A stronger U.S. currency makes dollar-priced crude more expensive for foreign buyers, tending to discourage demand. Most analysts expect the Fed to lower its key interest rate by a quarter point at its policy-setting meeting next Tuesday and Wednesday. Before their sharp fall, oil prices had broken a series of records over the past two weeks, boosted by the weaker U.S. dollar, supply worries and the OPEC cartel's reluctance to increase output.[15] A stronger U.S. currency makes dollar-priced crude more expensive for foreign buyers, tending to discourage demand. Tony Nunan, of Mitsubishi Corp (other-otc: MSBHY.PK - news - people )'s international petroleum business in Tokyo, said that the dollar 'might be near the end of its fall'. Most analysts expect the Fed to lower its key interest rate by a quarter point at its policy-setting meeting next Tuesday and Wednesday. Before their sharp fall, oil prices had broken a series of records over the past two weeks, sparking international concern.[14]
A weaker dollar also makes oil cheaper for investors overseas. An expected cut in interest rates further this year to shore up the ailing U.S. economy is expected to further weaken the dollar. Oil is now nearly double its closing price a year ago, and up 24% in 2008. As per the International Energy Agency, global oil demand is expected to rise about 1.3 mln bpd this year to 87.2 mln bpd.[25] The previous session witnessed oil prices spike to a record US$120 levels as the U.S. dollar continued to weaken, and concerns about unstable supply mounted amid firm global demand. The dollar dropped to a record low against the euro, helping draw more funds from investors who see commodities such as oil as a hedge against inflation and a falling dollar.[25] SINGAPORE (AP) — Oil prices slipped further Friday after falling more than $2 a barrel in the previous session as the dollar strengthened, prompting investors to book profits. Oil stalled in its march toward $120 a barrel on Thursday after the greenback gained against the euro. Investors see commodities such as oil as a less effective hedge against inflation when the dollar strengthens.[26] Friday morning in Asian trading, oil prices slipped further after falling more than $2 a barrel in the previous session as the U.S. dollar strengthened, prompting investors to book profits.[3] SINGAPORE (Thomson Financial) - World oil prices, which had threatened to break the $120-dollar-a-barrel level, fell further Friday after a strengthening U.S. dollar and rising U.S. crude stockpiles prompted traders to lock in profits.[14]
Day after day the argument is that commodity prices are stronger because the dollar is weaker. In fact only a week or two ago an OPEC official stated that for each 1% decline in the dollar crude oil prices had recently been rising by around $4 so, coincident or not, this is the widely accepted 'truth' that the markets have been trading from.[27] Oil rose to $119.55 a barrel, approaching the record of $119.90 set on April 22. Nigerias Minister of State for Energy Henry Odein Ajumogobia said he expects the countrys output of oil to drop by 50 percent, as strike by workers and attacks by rebels have forced its two biggest oil firms, Exxon Mobil and Royal Dutch Shell. In currency trading, the euro headed for its biggest weekly drop against the dollar in six weeks after reaching a record $1.6019 on April 22.[28] Oil supplies rose for the first week in three, gaining 0.8 percent to 316.1 million barrels in the week ended April 18, the Energy Department said. "It's a mix between a dollar reaction and the fact that crude stocks rose yesterday,'' said Thina Saltvedt, an oil analyst with Nordea Bank AB in Oslo.[6] Crude oil stocks were expected to increase 1.1 million barrels in the U.S. Energy Department's Energy Information Administration's report, the survey showed.[8] At a recent conference in Washington sponsored by the U.S. Department of Energy, experts argued that the world production of conventional crude oil peaked in May 2005 at 74 million barrels a day.[29] In Scotland, workers at Ineos PLC's 196,000 barrel-a-day Grangemouth refinery and petrochemical plant threatened to strike over changes to an employee pension plan. Global oil demand is expected to rise about 1.3 million barrels a day this year to 87.2 million barrels a day, according to the International Energy Agency. China imported a record 4.09 million barrels a day of crude oil last month, final data from its General Administration of Customs showed Tuesday.[8] "Khurais and Manifa are the last two giants in Saudi Arabia," says Sadad al-Husseini, a former Aramco vice president for oil exploration. "Sure, we will discover dozens of other smaller fields, but after these, we are chasing after smaller and smaller fish." The Khurais project is at the heart of an all-out effort by Saudi Arabia to keep abreast of natural declines in older fields while trying to preserve its status as the oil world's lone safety valve. Saudi Arabia is under pressure to ramp up its output as the world scrambles to keep pace with rising oil demand, which the International Energy Agency predicts could hit 99 million barrels a day by 2015, up from 87 million barrels a day this year. Skepticism runs deep in oil quarters over whether Saudi Arabia can overcome a slew of challenges, both geological and economic, to turn the Khurais field into what Saudi officials hope will become the fourth most productive oil field in the world, after Ghawar and fields in Kuwait and Mexico. "This is the big one," says Matthew Simmons, a Houston energy investment banker whose 2005 book "Twilight in the Desert" challenged Aramco's petroleum prowess. "If Khurais falls short of its advance billing, then Saudi Arabia is going to struggle to fulfill its promises."'[30]
Some doubt that Khurais will reach the promised 1.2 million barrels a day of oil production or be able to sustain that level if it does. Mr. Husseini, the former Aramco head of oil exploration, who retired five years ago, says he doesn't doubt the company can extract that much at least briefly. "The question," he says, "is how long you can sustain it and at what price."[30] If trends continue, Mexico, the fifth-largest oil exporter in the world, exporting 1.9 million barrels a day, could become a net oil importer within 10 to 20 years. Mexico does have ways to replace this production, but it will take money and technology. Pemex doesn't have the money to invest in drilling all these wells or for buying this pumping and separation equipment.[30]
In Mexico, oil production slipped 7.8 percent in the first quarter to 2.91 million barrels a day as output at the country's oil fields waned, state oil company Petroleos Mexicanos said.[8] Mexico's total oil production, which peaked at 3.4 million barrels a day in 2004, fell to 3.08 million barrels a day in 2007.[30]
SAN FRANCISCO (MarketWatch) - Crude-oil futures fell more than $2 a barrel Thursday, pressured by strength in the dollar and data that showed last month's home sales in the U.S. plunged to a 17-year low, strengthening views that the largest oil consuming country is in a recession. [31] Brent crude fell 28 cents or 0.25 percent to $115.33 a barrel on the London ICE Futures Exchange. This article is copyrighted by International Business Times.[4] Brent crude for June settlement dropped as much as 95 cents, or 0.8 percent, to $115.51 a barrel on London's ICE Futures Europe exchange. It traded at $115.96 a barrel at 1:31 p.m. local time.[6]
Brent crude for June settlement gained $US1.52, or 1.3%, to close at a record $US115.95 a barrel on London's ICE Futures Europe exchange.[13] Brent crude futures slipped by $1.03 to $115.43 a barrel on the ICE Futures exchange in London. Associated Press Writer Gillian Wong contributed to this report from Singapore.[11]
In London, June Brent crude futures slid 2.12 dollars to 114.34a barrel on the ICE Futures exchange.[32]
Brent Crude was trading at $114.34 down $2.12 on London 's ICE Futures Market.[33]
In other Nymex trading, heating oil futures fell 1.83 cents to $3.24 a gallon while gasoline prices dropped 2.36 cents to $2.995 a gallon.[26] PAUL KANGAS: Oil prices rose slightly today adding $0.23 to $118.30 a barrel in New York trading.[34] If the price climbs to $107 a barrel, the oil company's revenue increases by just $16 a barrel from what it was at $27 a barrel. That may delight U.S. consumers who believe oil companies are making obscene windfall profits from soaring oil prices, but it hasn't made companies eager to sink their money into developing new oil in Russia.[30]
Unions planning to strike at a 200,000 barrel-a-day refinery in Scotland next week are holding talks with the plant's owners Ineos Group Holdings Plc today after failing to reach agreement yesterday. "This morning oil has eased back below $118 a barrel amid profit-taking after crude prices have gained just over 18 percent this month,'' said Nimit Khamar, an analyst at Sucden (U.K.)[35] Crude prices retreated below $118 a barrel as traders speculate a report today will show crude supplies rose last week.[4]
In early April, the international price for WTI crude rose to $110 per barrel.[29]
The weakness of the dollar compared to the first-half of last year has been a primary factor to crude oil's sharp rise in recent months. That rise sent gas prices shooting way past $3 per gallon and sparking fears it could reach $4 by summer.[7] Crude oil contracts have become attractive to investors seeking to offset a 14 percent decline in the dollar against the euro in the past year. When the dollar strengthens, oil loses some of its appeal as an inflation hedge.[6] April 25 (Bloomberg) -- Crude oil fell for a third day as the recovering U.S. dollar dimmed the appeal of commodities as an inflation hedge. Oil is heading for its first weekly decline since March 21 even as a two-day refinery strike in the U.K. threatened to disrupt as much as 40 percent of the country's crude output.[2]
April 23 (Bloomberg) -- Crude oil declined for the first time in four days on speculation yesterday's record near $120 a barrel wasn't justified.[35] The single European currency traded at $1.5694 on Friday, three days after it had crossed $1.60 for the first time. 'It seems that a larger-than-expected increase in U.S. crude inventories during last week and a stronger dollar were good excuses for some investors to book profits,' Sucden analyst Andrey Kryuchenkov said.[14]
Trading volume was thin as the market awaited inventory data from the U.S. Energy Department. The dollar's drop to a record low Tuesday against the euro helped draw more funds from investors who see commodities such as oil as a hedge against inflation and a falling dollar.[8] The dollar was higher in European trading, after taking back some ground against the euro Wednesday. A stronger dollar makes commodities such as oil less attractive as a hedge against inflation and makes oil more expensive to investors overseas.[11]
'Dollar gains against the euro continue to weigh on crude and other commodities, and so the trading relationship between the U.S. dollar and movement in oil pricing continues,' said Victor Shum, senior principal at Purvin and Gertz energy consultancy in Singapore.[14] Oil reached $119.90 a barrel yesterday when the U.S. dollar touched an all-time low of $1.6018 to the euro.[35]
"The euro is strong against the dollar, which is once again providing an impetus for a push higher,'' said Addison Armstrong, director of market research at TFS Energy LLC in Stamford, Conn. Crossing $1.60 per euro means "there will be a lot of commodity buying, especially oil.'' Record Gasoline Regular gasoline, averaged nationwide, gained 0.8 cent to a record $3.511 a gallon, AAA, the nation's largest motorist organization, said yesterday on its Web site.[1] Under Danny Williams' new royalty system for White Rose, the federal government will get 37.5 per cent and the province 25 per cent. Husky Oil and Petro Canada are rushing to invest there, hiring a new offshore rig which will cost them $1 million per day.[29] Separately, AAA and the Oil Price Information Service said gas prices at the pump rose 2.2 cents overnight to a new record of $3.53 a gallon.[18] Heating oil for May delivery rose 0.55 cent to a record settlement price of $3.3169 a gallon.[1]
The twin forces have led to historically high prices for crude oil, which settled at a record $117.48 on Monday.[30] NEW YORK, April 25 (Xinhua) -- Crude oil prices jumped Friday on news that a ship under contract to the U.S. Defense Department fired warning shots at two boats in the Persian Gulf.[9] NEW YORK, April 24 (Xinhua) -- Crude prices retreated Thursday as the U.S. dollar rebounded against euro.[32] NEW YORK (Thomson Financial) - The oil-service sector fell for a third straight session Thursday, as crude futures retreated sharply amid strength of the U.S. dollar and broad-based weakness in the commodities sector.[16]
NEW YORK (AP) - Oil futures have dropped since the Energy Department reported today that the nation's crude supplies grew more than expected last week.[18]
In hindsight, have the price moves been irrational? Ali Al Naimi, Saudi Arabian Oil Minister, said last week that oil prices would not go below $60/bbl because that is the cost of alternatives. With current marginal costs and demand trends, he may be right. Short-term prices could dip below this level, but if they did so, then investment in non-OPEC supplies could suffer, creating upward price pressures for the future.[30] Some academics suggest long-term oil prices should be reflected as a multiple (roughly three to four times) of finding and development costs (F&D;). Others would disagree. We are in an era of higher oil prices, and so if we look at $100/bbl oil we have to do so with an understanding that prices are unlikely to return to levels seen in the early part of this decade. Even if cost inflation and a weakening dollar put further upward pressures on the oil price, we have a duty to ensure that the impact of these is not exaggerated.[30] Rising costs are leading to double-digit inflation rates for many of the major international oil companies of the world. Exxon Mobil has been experiencing double-digit inflation rates over the last five years as their lifting costs have exploded since 2002. Exxon Mobil simply isn't getting as much bang for their buck as inflation rates push up the lifting costs for energy companies. A large share of the $125 billion capital expenditure program announced by the company simply won't buy them what it once did, with real capital expenditures showing little reinvestment relative to nominal dollars.[30] Part of the reason for spiraling inflation rates within the energy complex is that much of the easily accessible oil has already been extracted and oil companies are having to go to great lengths and high costs to find new oil reserves.[30]
"As long as the Fed continues to cut rates, traders will keep selling the dollar, buying the euro, and buying commodities like oil," says Peter Beutel, president of the New Canaan (Conn.) -based energy risk management firm Cameron Hanover. It also doesn't help that investors are still skittish about putting more money into stocks.[19] The large private oil corporations are having a difficult time finding new reserves. Talisman, for example, has seen the price of its stock drop due to the fact that its reserves are primarily found in mature areas with declining supply and production.[29] Demand will go down once the full consequences of high crude prices reach store shelves. OPEC have said there is enough crude to meet demand and, like last year at this time, they are not increasing production. This is used to drive crude prices up even further but in truth if people can't afford to buy hydrocarbons products demand will go down and pumping more crude out of the ground and/or seabed would not affect the price. A group of U.S. senators on Thursday threatened to block arms deals with OPEC member countries if they do not boost oil output to help bring down soaring gasoline prices.[33] Prospects that gasoline output may fall further just ahead of peak demand have led some analysts to believe that gasoline prices will drive the oil spectrum higher. Shum noted also that gasoline inventories remain above the five-year average for this time of the year, despite the decline. "Even though the gasoline inventory dropped sharply, the inventory at this time of the year in the U.S. is at the top end of the range despite several weeks of declines," he said.[11]
The more active June contract, now the front-month, settled at $118.07 a barrel, up $1.44. Oil is now nearly double its closing price a year ago, and up 24 percent in 2008. [8] Oil rose as high as $119.90 a barrel on April 22 on the falling dollar and supply disruptions from Nigeria and a Scotland refinery.[22] Crude rose as high as $119.90 a barrel yesterday as the dollar dropped to a record low of $1.6018 against the euro.[4] London Brent crude, which hit a record $116.75, was trading $1.42 higher at $115.85 a barrel.[21] In London, Brent for June delivery is trading on the International Commodities Exchange at $115.97 up 2 cents.[12] Gold for June delivery ended up 30 cents at $889.70 an ounce on the New York Mercantile Exchange.[28] Lightly traded nearby April gold fell $16.10 to settle at $906.20 after an intraday low of $898.80, on the Comex division of the New York Mercantile Exchange. That was the first time a front-month contract fell below $900 since April 4, when gold also reached $898.80.[36] The contract dropped $2.24 overnight to settle at $116.06 a barrel on the New York Mercantile Exchange. It sank as low as $114.25 a barrel during the session.[26]
Light, sweet crude for June delivery settled at US$118 on the New York Mercantile Exchange by midmorning in Singapore.[25]
The euro fell 1% to $1.5733 per dollar at 10:05 a.m. in New York, from $1.5889 yesterday. [37] The spot price of gold is at $919.10 per ounce down $2.90 from Tuesday's close in New York.[12]
NEW YORK - Gold edged higher on Friday after two-day slump, as energy cost increased and the U.S. dollar gained against other major currencies.[28] "The recovery in the U.S. dollar weighs on oil prices," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.[11] The U.S. dollar is still one of the key factors influencing the oil market, despite recent supply concerns, said Sucden analyst Andrey Kryuchenkov.[16]
Higher interest rates tend to stabilize or strengthen the dollar. "The current thinking is that the U.S. dollar may be bottoming out, and so market participants therefore unwound some of their positions in oil and took some profits," Shum said.[26] "The dollar continues to face a lot of pressure, it is likely to further weaken and that will continue to underpin prices." Many analysts expect the Federal Reserve to cut interest rates further this year to try to shore up the ailing U.S. economy, a move that would likely further weaken the dollar.[8] Analysts said the dollar gained ground Thursday on speculation the Federal Reserve is growing concerned about inflation and may not cut interest rates as much as once thought.[26] Analysts say the dollar is gaining ground as the Federal Reserve apparently becomes more concerned about inflation, and may not cut interest rates as much as once thought.[3]
Some traders are betting that low interest rates, a feeble dollar, and robust demand from China and India will keep demand for energy stoked and prices high. [19]
The strength in oil prices is even taking the most ardent energy bulls by surprise despite a U.S. slowdown. Some attribute the rise in both gold and oil to the weakness in the dollar, but the decline in the dollar can only explain part of the move in oil and gold.[30] Oil prices slipped today on the back of a strengthening American dollar and a U.S. government report showing an increase in crude supplies.[7] VIENNA, Austria (AP) — Oil prices dropped Thursday on the back of a strengthening American dollar and a U.S. government report showing an increase in crude supplies.[11]
As recently as January of 2007 when crude oil prices declined to 50 the XAL reached roughly 67 so over the past 5 quarters as the price of crude oil has risen from 50 to almost 120 the market cap of the U.S. airline industry has declined by over two thirds. Those who believe that crude oil is going to reach 150 or even 200 might want to think about investing in shoe manufacturers because the future is going to include an awful lot of walking.[27]
The IEA now expects global demand growth for crude oil to rise 2.0% in 2008, that despite a slowdown in the U.S. The following figure below shows that Asia's 2008 demand growth exceeds the demand decline in North America by an 8.8 ratio, indicating Asia's is consuming 8.8 barrels more for every one barrel less coming from North America.[30] What is also astonishing is the rapid growth in oil consumption in the Middle East, with the Middle East consuming more than four barrels for every one barrel decline in North American consumption. Two of the dominant players in terms of growth in oil consumption are China and India, with both countries oil demand in January exceeding 2007 levels by a sizable margin with demand outside the five year range. The same can not be said of the U.S. where demand is at the bottom of the 5-year range for oil product demand.[30]
The Khurais complex, sprawling across a swath of red dunes and rocky plains half the size of Connecticut, is expected to add 1.2 million barrels a day to an oil market caught between growing demand and a paucity of significant new discoveries.[30] Stockpiles of distillates, which include heating oil and diesel, fell 1.4 million barrels, more than four times the expected level.[11] The Energy Department says gasoline inventories fell by over three million barrels last week while crude supplies rose unexpectedly.[34] A weekly United States Department of Energy report on energy stockpiles on Wednesday showed U.S. crude reserves rose 2.4 million barrels last week, beating market expectations for a 1.5-million-barrel gain.[14] The U.S. Energy Information Administration said crude stocks rose by 2.4m barrels last week, higher than expectations of around 1.1m barrels.[5]
The Energy Department's weekly report showed that U.S. crude stocks grew by more than double what analysts expected.[23] As Erika Miller reports, some analysts think rising crude prices will continue to support oil company shares. ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: With crude at record levels, it's no wonder oil stocks have been gushing higher.[34] MILLER: But others believe crude prices are in a speculative bubble and it would be a mistake to buy most oil stocks now.[34]
The dollar has an inverse relationship to the price of a barrel of crude. Crude prices surged toward 120 dollars a barrel early this week due to the weak dollar and supply concerns.[32] One would think that decreasing the price of crude is as simple as increasing supply but the price per barrel of crude is down to Wall Street and where people put their money.[33]
"Supply concerns will still underpin oil pricing, so the pullback won't be very substantial," Shum said. Feeding those concerns, about 170,000 barrels a day of Nigerian production remained shut-in following a pipeline attack late last week. BP PLC is also considering shutting down its 700,000 barrel-a-day Forties pipeline system if a strike continues at a U.K. refinery.[26] The geopolitics and geology highlighted by Mr. Jubak are leading to decline rates in oil production in mature oil fields all over the world, reducing available supply. The IEA's observed decline rates for non-OPEC producing countries from 2000-2007 supports Mr. Jubak's claims, with their findings presented below. This periodic review of non-OPEC oil field decline rates focuses on mature crude oil and condensate fields showing sustained, yearly output decline over periods of at least 12-18 months.[30]
The production decline in Russia would be serious enough if it were an isolated problem. It's not. The same conjunction of geology and geopolitics is crimping production in Nigeria and Mexico, for example. In Nigeria, a third of the country's oil output by 2015 is at risk, energy advisers to Nigerian President Umaru Yar'Adua have warned, because the government hasn't been paying its share of the costs of joint ventures -- about $3 billion to date -- with Royal Dutch Shell, ExxonMobil, and Chevron. If the government's failure to pay jeopardizes the joint ventures, Nigeria can kiss plans to double its production goodbye.[30] The headwinds facing the energy complex at a time of rising emerging market consumption growth is resulting in higher energy prices. Higher energy prices are fundamentally supported, though they may be temporarily overextended to the upside. As the IEA noted above, the world needs to start getting used to higher energy prices as the floor for oil keeps rising as its cost of production continues upwards.[30]
Oil and gold are up over 50% and 40% respectively, while the dollar has declined roughly 10% since August of 2007, clearly not a one to one ratio in terms of movement in opposite directions. As oil prices have continued to climb over the last several years both politicians and the public alike have labeled energy prices as a bubble waiting to burst with the recent price spike blamed on 'speculators.' However, as the'speculators' were right in the past as viewed by the IEA, they may be right again as the fundamentals support their bullish bets. It is fair to say that politicians have greeted most sharp rises in prices over the past eight years as a symptom of speculation.[30] A major conference of the world's largest oil consumers and producers ended Tuesday with a measured statement about the risks of oil prices. The International Energy Forum, after meeting in Rome this week, said in a statement that "oil prices should be at levels that are acceptable to producers and consumers to ensure global economic growth, particularly in developing countries."[8] MARK GILMAN, OIL AND GAS ANALYST, THE BENCHMARK COMPANY: We still think that there's noticeable risk almost across the entire sector, if in fact our price expectations prove to be valid, namely that prices are unlikely to be sustained at levels above $50.[34]
Diesel prices also set a record, at $4.20 a gallon, according to AAA and the Oil Price Information Service.[19] The news from the trading pits is, well, no news at all: Oil prices are again breaking records.[19]
U.S. WTI (NYMEX - West Texas Intermediate) oil hit $119.90 in Asian trading before closing at $118.11.[12] The Oil Services Holdrs ETF (OIH) tumbled as much as 3.6% to $198.71 in intraday trading, before recovering slightly to trade down 2.6% at $200.81.[16]
Earlier Futures reached $US119.90, the highest intraday price since trading began in 1983.[13] The contract reached $3.35, the highest since trading began in 1978. Some traders use heating-oil futures to hedge their diesel and jet-fuel purchases.[1]
Gold futures slipped below $900 an ounce as the dollar strengthened, oil declined and the world's largest gold exchange-traded fund saw a marked drop in holdings.[36] The dollar rose more than 1 percent against a basket of major currencies after a U.S. weekly report showed unemployment claims fell unexpectedly causing investors to sell futures.[22] The more-active June futures rose $1.12, or 1 percent, to settle at $118.07 a barrel.[1] The May contract, which expired yesterday, rose $1.89, or 1.6 percent, to settle at $119.37 a barrel on Nymex, a record close.[35] The contract gained $1.52, or 1.3 percent, to close at a record $115.95 a barrel yesterday after touching $116.75, an all-time intraday high.[35]
The euro was down a bit against the U.S. dollar, a day after it breached $1.60 to a record high. [8] With commodity prices at record highs while the dollar is at a record low against the euro we start off today with a slightly different perspective as we take the CRB Index and multiply it by the U.S. Dollar Index (DXY).[27]
Dollar extended gains yesterday, continuing recovery from the record low levels against the Euro, finding support in slightly encouraging data from the U.S. Labor market.[13]
The Australian dollar rose as high as 95.10 U.S. cents - the highest level against the U.S. dollar since 1984.[12] "The precious-metals complex suffered significant losses today, as the U.S. dollar gained and oil.[36]
The weakness of the dollar compared to the first-half of last year has been a primary factor to crude oil's sharp rise in recent months.[11] Only seven per cent of the remaining world reserves of crude oil are in countries like Canada, where the IOCs have full access to the resource.[29] Of the remaining oil reserves, 77 per cent are controlled by producing countries with state-owned national oil companies (NOCs) where the privately owned international oil companies (IOCs) are excluded. Another 11 per cent of reserves are in countries with NOCs where the private companies have some access through production sharing agreements.[29] Depleted assets in the North Sea, Australia and offshore U.S. all exhibit typical decline of at least 15% per annum (as indeed to parts of Mexico's offshore production, included here alongside non-OECD Latin America). Newer fields in these areas ' often deepwater, smaller accumulations of oil ' are also prone to rapid build to plateau, followed quickly by sharp decline.[30]
Gasoline supplies have been falling lately, raising concerns about stockpile levels as the Northern Hemisphere summer driving season approaches. Those concerns about motor fuel supply are exacerbated by the possible shut-in of BP's Forties pipeline system. Both the North Sea and Nigeria produce oil that is low in sulfur and other impurities, which makes it ideal for gasoline production.[11] The gap to the current production level of 88 million barrels a day is now being filled by much more expensive and difficult to access non-conventional sources.[29] The Ministry of Energy and Petroleum released in the edition of the Official Gazette dated April 18th, under resolution number 100, the addition in the last quarter last year of 748.46 million barrels of oil to Venezuelan proven reserves.[24] Forecasts said gasoline stockpiles declined between 2 and 2.3 million barrels and oil supplies increased ranging from 1.2 to 1.5 million barrels according to surveys.[4] A U.S. government fuel inventory report to be released later Wednesday was expected to show U.S. gasoline inventories fell last week by 2.1 million barrels, according to a Dow Jones Newswires survey of analysts.[8] The EIA also reported that gasoline stocks fell 3.2 million barrels last week, about a million barrels more than expected.[11]
For the week ending April 18, gasoline inventories dropped 3.2 million barrels.[23] Gasoline stockpiles probably declined 2 million barrels in the week ended April 18 from 215.8 million barrels the week before, according a Bloomberg survey.[35]
Oil supplies advanced 1.5 million barrels from 313.7 million barrels, according to the median of responses from 15 analysts.[35]
In the 1990s, it cost oil corporations around $6 to extract a barrel of oil in western Canada. This has now risen to around $15.[29] Through most of the 1990s, it cost Aramco around $4,000 to add one barrel of daily production capacity.[30]
When oil rises above $27 a barrel, the Russian government takes 80% of any additional revenue in taxes. That means at $67 a barrel, an oil company gets just $8 more a barrel in revenue than at $27.[30] U.S. light sweet crude hit an all-time high of $119.90 and was up $1.49 at $119.06 a barrel by 2:25 pm EDT (1825 GMT).[21] Prices rose to just under $120 a barrel the previous session on concern about tight supplies.[5] The dollar rose 1.1 percent to $1.5719 against the euro in London, after rising 0.6 percent yesterday. It reached $1.6019 on April 22, the lowest since the euro's 1999 debut. It traded at $1.5767 at 1:26 p.m. in London.[6] The dollar rose against the 15-nation single currency Thursday giving investors a chance to lock in profits from oil's recent record run.[32] Few analysts are willing to predict that oil's record run is over. Investors remain concerned about tight supplies of oil amid growing global demand, they say.[26]
All three are classed as distillate fuels. High Commodity Prices The falling dollar and higher global demand for raw materials have led to records this year for commodities including gold, corn, soybeans and rice.[1] There may only be a handful of airlines left in a few years but, even so, the idea of travelling quickly by air- especially over large bodies of water- instead of walking, pedaling a bicycle, driving an automobile, or paddling a boat seems to make long-term sense. We mention this because the Airline Index (XAL) last peaked in 1998 at the bottom for Asian growth and commodity prices and has been declining for the better part of a decade as the Australian dollar (tied closely to the commodity trend) has moved higher.[27]
Intermarket-wise the argument would be that GM will only turn positive once commodity prices finally weaken although one might be able to argue as well that a flat commodity market and plunging dollar could be a positive as well. We suspect- and we do not think that we are going too far out on a limb with this one- that the future will include airline travel.[27] May gasoline futures hit an intraday record for the eighth-straight session, settling at 3.0507 dollars a gallon, up 3.43 cents, or 1.1 percent.[23] Natural gas futures were lower by 4.9 cents to $10.558 per 1,000 cubic feet. Associated Press writer Gillian Wong in Singapore contributed to this report.[8] May copper futures gained 4 cents to end at $3.92 a pound. This article is copyrighted by International Business Times.[28] On the Nymex, May silver futures gained 19 cents to end at $16.85 an ounce.[28]
July platinum futures lost $2.70 to end at $1,968 an ounce, while June palladium rose $2.50 at $448.95 an ounce.[28]
"Traders are relentlessly long because there's nowhere else to go," says Phil Flynn, an analyst and vice-president at brokerage firm Alaron Futures & Options in Chicago. "They're heading to oil and other commodities for safety." It's unclear how much lower the dollar can go.[19] Oil futures are a safe place to put it. Unfortunately safety comes at a cost for all of us and in this instance it could mean people cutting back on expensive hydrocarbons products.[33] One of the reasons the IEA used to explain higher oil prices are the spiraling costs just to extract oil out of the ground and ocean.[30] Any significant dollar movement would still affect oil prices at the moment.[16] The price of oil and the value of the dollar once again are marching toward opposite extremes.[17]
Prices were boosted by the weaker U.S. dollar, supply worries and the OPEC cartel's reluctance to increase output.[14] Royal Dutch Shell Plc closed 169,000 barrels a day of supply after attacks on a pipeline last week. The U.S. Energy Department is scheduled to release its weekly report on inventories today at 10:30 a.m. in Washington.[35] Crude prices surged on reports that a ship hired by the U.S. military forces fired shots at two Iranian vessels.[28] Crude prices have jumped about 80 percent over the past year, while retail gas prices have risen 24 percent in that time.[3]
Gold surged 31 percent last year as oil soared 57 percent, spurring the biggest gain in the inflation rate since 1990.[28] Australia's inflation rate rose to more than 4% for the first time in seven years.[12] The consumer price index rose 4.2% in the first quarter from a year earlier, the Bureau of Statistics said in Sydney today. The Reserve Bank raised its benchmark rate to 7.25% in March.[12]
Venezuela's PDVSA sold a prompt-loading 270,000-tonne cargo of fuel oil to Petrobras of Brazil via private negotiations after cancelling a tender earlier due to poor price offers, traders said on Wednesday. This Saturday (04/19), Petrobras completed the deck mating procedure for platform P-51, the first semi-submersible platform built entirely in Brazil. Deck mating is a mega operation carried out to join the unit's hull to its topside.[24] "How and how long it would impact the Forties crude oil stream is not yet fully transparent, but the market will shoot first and ask questions later,'' Olivier Jakob, managing director of Petromatrix GmbH in Zug, Switzerland, said in a report today.[6] The Pioneer oil refinery is silhouetted against the setting sun Thursday, April 24, 2008 in El Dorado, Kan. as the facility transforms crude oil into gasoline and other petroleum products.[26]
Some oil-company stocks rose along with crude on Apr. 21, with Hess closing up 7% at 112.56; ExxonMobil up 0.3% to 94.26; and Marathon Oil up 0.9% to 49.21.[19] Stocks of distillate, which includes heating oil and diesel fuel, were expected to fall 300,000 barrels.[8]
Meanwhile distillates, used to make heating oil and diesel, fell by 1.4m, much higher than the 300,000 barrel decline expected by analysts.[5] The average productivity of an oil well in the WCSB has dropped from 33 barrels per day in 1994 to 18 in 2003.[29] In 2007, the average oil well in Alberta produced only only 12 barrels per day.[29]
Even in libertarian Republican Alaska, the government is raising the basic royalty on oil from 22.5 per cent to 25 per cent and eliminating many of the key deductions and subsidies.[29]
Brazilian ethanol producer Cosan said on Thursday it had agreed to buy ExxonMobil's assets in Brazil for $826 million, outmaneuvering state-run oil giant Petrobras to gain a foothold in the fuel distribution business.[33] Every now and then I bump into articles that really open my eyes. They give me new insights on topics I already kind of made my mind up about. Petroleos de Venezuela SA, the state energy company, took over the government-owned shipbuilder as part of a plan for Venezuela to build its own oil tankers and offshore rigs. CHICAGO & CARACAS, Venezuela - (Business Wire) Fitch Ratings has upgraded both the Foreign Currency and Local Currency Issuer Default Ratings (IDRs) for C.A. La Electricidad de Caracas (EDC) to 'BB-' from 'B+.' In addition, Fitch has assigned a 'BB-' rating to the proposed issuance of up to USD650 million senior unsecured notes due 2018 to be issued by EDC. Fitch has upgraded the long-term national scale rating of EDC to 'AAA(ven)' from 'AA-(ven)' and the short- term national scale rating to 'F1+(ven)' from 'F1(ven)'.[24] Diesel advanced to $4.204 a gallon. "We are starting to see a lot of economic pain as a result of these prices,'' said Antoine Halff, head of energy research at New York-based Newedge USA LLC. "This is going to have an impact on demand.''[1]
At one point, a euro fetched more than $1.60 -- a symbolic milestone -- for the first time since the currency's inception in 1999.[17] The euro increased 0.4% to $1.59 on Apr. 21-within 1'' of a record-as European Central Bank officials reiterated concern that inflation has accelerated.[19]
Rising inflation within the energy complex is shown below with the PPI data for oil field and gas field machinery.[30] Inflation rates for the oil field and gas field machinery industry cooled down starting in 2007, but have picked up again and are approaching double-digit inflation rates.[30]
The hydrocarbons industry has warned that a massive expansion of the Australian continental shelf does not necessarily mean new oil and gas discoveries any time soon.[24] The news raised concerns that a conflict between U.S. and Iranian forces could cut oil supplies from the region.[9]
High oil and natural gas prices pushed ConocoPhillips' first-quarter profits up 17 percent, the Houston-based company said today. ConocoPhillips is in talks with PDVSA to receive compensation for those operations. [33] The American Exchange oil index has rallied 16 percent in the past three months, compared to a 3 percent gain in the S&P; 500.[34] Gold dropped 3.9 percent in the past two days, while oil declined 2.8 percent.[28]
In Mexico, oil production fell by 7.8% in the first quarter to 2.91 mln bpd as output at the country's oil fields waned.[25] "Dollar strength seems to be offsetting the fundamental bullishness on oil,'' said Robert Laughlin, senior broker at MF Global Ltd. in London.[2] Gold, wheat, silver and corn prices also dropped as the dollar climbed on expectations the Federal Reserve may stop cutting interest rates.[2] A union labor strike in a major refinery in Scotland affected prices yesterday. The refinery produces near 200,000 barrels of crude from the North Sea, its owners and union leaders are in talks.[4] The contract settled 23 cents higher at $118.30 a barrel on Wednesday.[7] Silver fell 55 cents to $17.28 while platinum fell $18.60 to $2018.80.[5]
The average price of a gallon of regular unleaded gasoline hit a high of $3.50 on Apr. 21.[19] The price of gasoline was $1.23 for a litre. Both have since risen even higher.[29]
Weekly government data showed stockpiles of crude were higher than expected while gasoline stocks fell more than expected. [5] The top right chart compares the CRB Index times the DXY and then compares it to the stock price of General Motors (GM).[27] Gordon Brown, the UK prime minister, said on Tuesday that the UK may push for a change in a European Union target to increase the proportion of biofuel to 10% of road fuels by 2020. Malcolm Wicks, the UK energy minister told the Financial Times that the targets should be reviewed because of mounting concern that they are contributing to food shortages. Angela Merkel, Germany'''s chancellor, said last week: '''Those rising global food prices have nothing to do biofuels.'''[12] Fadel Gheit, senior energy analyst for Oppenheimer, says unless the U.S. government steps in to rein in speculators' power in the market, prices will just keep going up.[19] Wall Street is also forecasting double digit profit growth for the rest of the year. Analysts say those strong earnings depend on a continued rally in energy prices.[34]
"The bulls are certainly in control of the oil market right now," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.[8] "Oil's bull run is taking a pause," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "Oil pricing has simply gained too much, too fast, and so this profit-taking activity is much deserved."[26]
Oil markets continue to be plagued by supply issues: A Royal Dutch Shell PLC joint venture declared a force majeure on April and May oil delivery contracts from a 400,000 bpd Nigerian oil field due to a pipeline attack last week. [25] "Oil has become a little bit of a monetary phenomenon, where low rates boost demand for oil in emerging markets.''[35] The rate of immigration has implications for labour force growth and housing demand. Official data on Irish immigration are not timely, but applications for PPS (social security) numbers from EU accession countries, which have powered immigration to this country in recent years, provide a useful guide to the trend. They show that the run-rate is back at 2005 levels. We do not expect the unemployment rate to get out of control this year thanks to slackening immigration. That slowdown in the flow of migrant labour implies fewer available workers who cannot find a job.[12]
For the week, Gold posted a drop of $25.50 from last Fridays closing level of $912.20 an ounce.[28] Site visitors hereby acknowledge that: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors.[27] Futures earlier reached the highest intraday price since trading began in 1983.[35] Among precious metals gold futures fell as the dollar recovered against major currencies.[5]
The Dollar Index, which tracks the greenback against a basket of the worlds major currencies, rose 0.9% to 72.47 in recent trading.[16] The dollar was higher in European trading, after taking back some ground against the euro Wednesday.[7]
SOURCES
1. The Bulletin - Philadelphia's Family Newspaper - Crude Oil Rises Above $119 On Record Euro
2. Bloomberg.com: Australia & New Zealand
3. Crude lower as dollar strengthens
4. Crude prices retreat to $117 as Supplies Rose Last Week | IBT Commodities & Futures
5. ShareCast - News you can use
6. Bloomberg.com: Latin America
7. Price of oil slips as dollar gains
8. The Associated Press: Oil falls from Tuesday record near $120
9. Crude prices jump on Persian Gulf tension_English_Xinhua
10. www.leadershipnigeria.com
11. The Associated Press: Oil drops below $117 a barrel as dollar gains
12. Markets News Wednesday: Oil retreats from above $119: UK PM may press EU to drop biofuel production target because of surging global food prices
13. US stocks down as oil hover near $120 a barrel
14. Oil prices fall further in Asian trade - UPDATE - Forbes.com
15. Business - Oil prices fall further - INQUIRER.net
16. Oil service stocks tumble for third session in a row on dollar strength | Latest News | News | Hemscott
17. Free Preview - WSJ.com
18. 21 News Now, More Local News for Youngstown, Ohio - Crude eases after Energy Dept. report
19. KTRE.com Lufkin and Nacogdoches |Oil Prices Keep Rising, with No Easing in Sight
20. U.S. crude futures up more than $2 on supply snags | Markets | Reuters
21. domain-b.com : Crude near-$120 a barrel as dollar hits a new low against euro
22. Crude Oil Slips to $115 a Barrel as Dollar Rallies | IBT Commodities & Futures
23. Crude futures rise slightly on supply concerns _English_Xinhua
24. Falkland Islands News Network - Financial Information and News
25. Oil rebound to US$118 after flitting near US$120
26. The Associated Press: Oil falls below $115 on stronger dollar
27. ForexHound.com trading news from the FX world
28. PRECIOUS METALS: Gold, Silver Gains on Higher Energy Costs | IBT Commodities & Futures
29. Letting dwindling oil, gas go cheap
30. Financial Sense Online Market WrapUp with Chris Puplava 04.23.2008
31. Crude drops on dollar's strength, home sales data - MarketWatch
32. Crude futures retreat as U.S. dollar rebounds _English_Xinhua
33. Tea Party With A Difference Raises '4,000.00 - Falkland Islands News
34. Nightly Business Report . Now May Not Be The Time To Buy Into Oil Stocks | PBS
35. Bloomberg.com: India & Pakistan
36. Free Preview - WSJ.com
37. Resource Investor - Blog - Crude drops below $117 as dollar rebounds
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