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Oil up as dollar weakens

Sep 11 2009 17:18

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New York - Oil prices extended their recent rise on Friday as the dollar fell to a fresh low for 2009, providing a boost to crude and other commodities.

Benchmark crude for October delivery was up 29 cents at $72.23 a barrel on the New York Mercantile Exchange. On Thursday, the contract rose 63 cents to settle at $71.94.

Natural gas, which soared 15% on Thursday, inched higher again on Friday.

The 16-nation euro bought $1.4613 in European trading, up from $1.4585 late on Thursday in New York and the highest level so far in 2009.

Crude is priced in dollars so it becomes cheaper when the dollar falls. Some investors also use commodities such as oil and gold as a hedge against inflation and dollar weakness. Gold was back above $1 000 an ounce on Friday.

Oil has jumped more than $4 this week as investors eyed rising stock markets and a slumping dollar.

"Once again, the dollar is controlling everything," PGFB analyst Phil Flynn said.

In other Nymex trading, gasoline for October delivery rose 0.96 cents to $1.8132 a gallon, and heating oil climbed 0.8 cents to $1.7965 a gallon. Natural gas was up 6.4 cents to $3.32 per 1 000 cubic feet.

In London, Brent crude rose 34 cents to $70.20 on the ICE Futures Exchange.

- AP

 
 
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