Oil prices get boost as dollar softens
APBANGKOK--A weaker dollar boosted oil prices Tuesday even as a resumption of refinery operations in the Gulf of Mexico in the aftermath of Hurricane Isaac eased concerns over supply disruptions.
September 5, 2012, 12:09 am TWN
Benchmark crude for October delivery was up 89 cents to US$97.36 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose US$1.85 to finish at US$96.47 Friday. There was no closing price Monday because of a public holiday in the U.S.
Brent crude was up US$1.58 at US$116.15 on the ICE Futures exchange in London.
In other energy futures trading, heating oil rose 3.4 cents to US$3.21 a gallon aat US$2.999 a gallon. Natural gas rose 0.9 cents to US$2.79 per 1,000 cubic feet.
Hopes that the European Central Bank will play a more crucial role in resolving the continent's debt crisis have helped support the euro against the dollar. After dropping to near two-year lows below US$1.20, the euro has pushed back above US$1.26. That pushes up the price of oil, which is traded in dollars and becomes cheaper for holders of other currencies when the dollar drops.
Oil analyst Stephen Schork said in a report that oil prices could see “increased volatility this week” due to the loss of a trading day Monday because of a holiday in the U.S.