Oil hits 10-week high to lead broad rally

[alp227]

Source: FT

Oil prices rallied more than $3 a barrel to their highest level in 10 weeks, leading a surge in commodity markets on the back of stronger than expected US employment data and a sharp fall in the dollar.

The price of benchmark Brent crude oil futures rose as much as $3.23 to a peak of $109.13 a barrel on Friday yesterday afternoon. Brent closed yesterday up $3.04 to $108.94.

The rally came as the dollar weakened 1.2 per cent against a basket of currencies, helping to trigger a sharp rise in commodity prices. A weaker dollar supports commodities, which are nearly all priced in dollars, by making them cheaper for non-US consumers.

Oil prices have risen 23 per cent from a low of less than $90 a barrel in mid-June, rallying 2.5 per cent over the past week.

Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/fda7a500-dd8a-11e1-8be2-00144feab49a.html

[AllyCat]

1. And just like that, gasoline prices rose about 60 cents a gallon.

They were $3.33 here about 10 days ago. I passed a BP in Madison tonight that was $3.79 on my way to work, and $3.95 when I left 9 hours later.

But when the prices drop for a barrel of oil, it takes WEEKS for the gas prices to drop accordingly. Cheats.