The Crude/dollar saga continues as oil rose above $99 a barrel for the first time as a slumping U.S. dollar increased demand for commodities at a time of declining heating oil inventories.
Reaching $100 oil will be a major psychological barrier,every week we draw inexorably closer to the twilight zone.. Northern Hemisphere winter.
Futures in New York rose to within 71 cents of $100 as the dollar fell once more on speculation that the U.S. Fed. will cut interest rates for a third time this year. U.S.
Crude oil for January delivery climbed to a record $99.29 a barrel in after-hours electronic trading on the New York Mercantile Exchange.
The highest close since trading began in 1983 was reached yersterday $98.03 a barrel,,
Brent crude oil for January reached $96.53 a barrel on the London-based ICE Futures Europe exchange, the highest since trading started in 1988.
Oil has become a hedge for investors and the weaker U.S. dollar has contributed to the rise in gold and oil, oil demand typically peaks in the fourth quarter during the Northern Hemisphere winter.
Also Royal Dutch Shell Plc speculated that a fire reduced output by more than 50 percent from a 155,000 barrel-a-day oil- sands plant in Alberta, potentially cutting shipments to the U.S.
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