Weaker U.S. Dollar Sends Oil Prices Up To Near $100 Per Barrel

SINGAPORE -- Oil prices rose to near $100 a barrel Monday in Asia, bouncing back from last week's plunge, as a weaker U.S. dollar made commodities less expensive for investors with other currencies.

Benchmark crude for June delivery was up $2.36 to $99.54 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $2.62 to settle at $97.18 on Friday.

In London, Brent crude for June delivery was up $2.52 to $111.65 a barrel on the ICE Futures exchange.

Oil prices fell 15 percent last week as the dollar strengthened and traders worried that slowing U.S. economic growth didn't justify a 35 percent increase from February to near $115 on May 2.

The euro rose to $1.4434 on Monday from $1.4312 on Friday while the dollar was little changed at 80.65 yen.

Some analysts are taking heart from a larger-than-expected increase in U.S. jobs last month. Non-farm payrolls rose by 244,000 jobs in April, while the unemployment rate rose to 9.0 percent from 8.8 percent in March.

"The fundamental backdrop in the market remains entirely unaltered, with global oil demand still showing continued strength," Barclays Capital said in a report. "The general (oil price) trend from here should be higher, rather than lower."

Other analysts expect oil to drop as higher U.S. gasoline prices – up 37 percent from a year ago – undermine crude demand. U.S. gross domestic product growth slowed to 1.8 percent in the first quarter.

"We expect oil to fall further as the global economy slows, the dollar continues to rebound, and the risk premium due to unrest in the Middle East eventually fades," Capital Economics said in a report.

In other Nymex trading in June contracts, heating oil rose 6.0 cents to $2.91 a gallon and gasoline added 7.0 cents to $3.16 a gallon. Natural gas futures were up 3.7 cents at $4.27 per 1,000 cubic feet.

Comments

[gomezrules]

11:14 PM on 05/10/2011

Hmmm. You won't see this reported anywhere on leftist sites...

http://www.youtube.com/watch?v=qKdScVerrBU

[ZeraLee]

03:53 PM on 05/10/2011

Oil speculation has repeatedly demonstrated it's ability to severely hurt the American economy. It has gone from a hedge to an economic disaster in it's own right. The time has come to consider whether is is in the national interest to continue participating in such a system, or bypass it entirely.

The government could get significantly lower prices by going directly to the supplied, and the American oil companies (and our allies who buy oil from us) could buy oil cheaper than on the open market, even if the government sold at a profit.

It would help the consumer, the taxpayer, and nearly all businesses - at the expense of windfall profits. This would be a trade-off that is good for the country.

[KennebunkportIndependent]

01:00 PM on 05/10/2011

Hey - a Ford Model T got 16 mpg.    A Model A got 20-30.  What's the problem??

[Vyvjala]

12:11 PM on 05/10/2011

Keeping the consumer thoroughly confused with phony numerical formulas, piecharts, graphs, and scales that are then channeled through with outright lies are just some of the greedy speculator and corporate methods disguised as excuses why oil prices are being spiked..............

[netzwerg]

10:11 AM on 05/10/2011

Gas is really cheap in the US. Next time I am in the States, I will rent a Hummer.

[KennebunkportIndependent]

01:02 PM on 05/10/2011

I just filled up at one pound forty a LITRE.    But I have NHS.  So I am better off - infinitely so - in the UK.

[joeisright]

07:25 AM on 05/10/2011

Yea. Justkeep printing that money. I will all work out.

[shadow013]

07:22 AM on 05/10/2011

Devalued dollar, takes more dollars to buy a barrel of oil
Devalued dollar, more dollars circulating from QE1-2 leads to speculation.
Devalued dollar, double whamy for majority who are non-elites.

[Keyop]

06:39 AM on 05/10/2011

Any cadillac escalade owners out there? Does your gas cost more a month than the car payment?

[up2uamerica]

12:48 AM on 05/10/2011

This is such BS! It's like an addict, there is always a reason to use! It is time to put an end to oil speculation!

[Mister Grumpy]

12:36 AM on 05/10/2011

The dollar rebounding......... Now that is Funny.............

It ain't going to happen.............

[KennebunkportIndependent]

01:05 PM on 05/10/2011

Not if you want the whole US economy to recover.

The old adage - you have to spend money, to make money.  The devalued dollar is part of the deal if you want a job.

Just drive less.  Regard your car as a form of penance, not an extension to your pe nis.

[jcaunter]

12:35 AM on 05/10/2011

The other thing sending up oil prices is peak oil, and this concept is very much related to Ben Bernanke's destruction of the US dollar, which is exacerbating the peak oil effect on price.

http://www.chrismartenson.com/crashcourse/chapter-17a-peak-oil

[KennebunkportIndependent]

01:05 PM on 05/10/2011

How is a strong dollar good?  Pride?

[Satish Chourasiya]

11:38 PM on 05/10/2011

Very good post, I was really searching for this topic, as I wanted this topic to understand completely and it is also very rare in internet, that is why it was very difficult to understand.
Thank you for sharing this.
regards:
commodity market

[luminavi]

12:26 AM on 05/10/2011

Weaker dollar sends not just oil prices up, but also food prices. And with oil up, everything else goes up in price.

THANKS A TRILLION, Mr. Bernanke. And Mr. Obama. Now how about a QE3?

[ta8ersalid]

10:15 PM on 05/09/2011

Basically, the analysts have no clue where oil is headed.

One says up, other says down.

It goes where the speculators push it.

End of story.

[jcaunter]

12:39 AM on 05/10/2011

Nope. Wrong. That's only a convenient lie so Obama can put off dealing with the real reasons for oil prices rising, since dealing with those issues in an adult manner might hurt the feelings of his rich golfing budding in the energy sector and on Wall Street.

[ta8ersalid]

07:52 PM on 05/12/2011

Gas prices are up 50% since December.

And you were saying?

Your point is what again?

Oh yeah, Obama caused it....got it.

LMAO.

[KennebunkportIndependent]

01:06 PM on 05/10/2011

True.  America could nationalize oil, drill everywhere, and be self sufficient.  At $8 a gallon.

[liberalbug]

09:51 PM on 05/09/2011

Why isn't this article posted higher in the cue than the article discussing the record breaking price collapse of oil on Friday?

[MeinNH]

07:36 AM on 05/10/2011

The price collapse will not lower the cost of gas and oil.

[BBackSoon]

09:36 PM on 05/09/2011

I smell Bullshite!

There is no reason oil goes up except than the powers that be wanted oil prices to go up.

There is no rational reason that oil does anything, it is 100% manipulation.

And maybe I would feel better if they just quit lying to us and said, 'Oil is this price because we think we can get it without you changing your ways or rioting.'

[Peanut Santiago]

09:55 PM on 05/09/2011

I've smelled bullshite for years.

What are we going to do?

Until America starts to have social unrest and riots.

What do you think is causing all the unrest in the Middle East?
The urge for democracy?
Or the anger at higher prices making many things unaffordable or barely affordable (like food).

[KennebunkportIndependent]

01:07 PM on 05/10/2011

OK, but most have little sympathy with F150 owners rioting about the price of oil.

[luminavi]

12:26 AM on 05/10/2011

It's called QE2.

[BBackSoon]

10:19 AM on 05/10/2011

Stupid comment. What was it last year or 5 years ago, or 10 years ago?

There are excuses not reasons.

[KennebunkportIndependent]

01:08 PM on 05/10/2011

The ship???