Crude Oil Rises Over 70$, Gas Surges

Tuesday, June 9, 2009


Crude oil rose above $70 a barrel and gas climbed to an eight-month high while the dollar fell,
bolstering the appeal of energy as an alternative investment.



Oil advanced 2.8 percent as rising stock prices reduced the need for holding the U.S. currency as an inflation hedge. The U.S. Energy Department will probably report tomorrow that refiners boosted operating rates to meet summer gasoline demand, according to a Bloomberg News survey.


Crude oil for July delivery gained $1.92 to $70.01 a barrel at 2:51 p.m. on the New York Mercantile Exchange, the highest settlement since Nov. 4. Prices have risen 57 percent this year.


Gasoline for July delivery rose 3.07 cents, or 1.6 percent, to end the session at $1.9667 a gallon in New York. It was the highest settlement since Oct. 9.


Regular gasoline at the pump, averaged nationwide, will cost $2.47 a gallon from April through September, the Energy Department said today in its monthly Short-Term Energy Outlook. The retail price forecast is down from $3.81 a gallon last summer and up from $2.21 estimated last month.

(Bloomberg.com) (Taken almost entirely from: Yeshiva World News)

(MRN- 19)