Oil prices reach new highs this year Tuesday as dollar plummets
Oil prices neared new highs for the year Tuesday as the dollar slipped against other major currencies, demonstrating how much the weakened US currency can affect consumers globally. The US dollar index, where the U.S. currency is measured against other major currencies, hit a 14-month low Tuesday.
Because crude is bought and sold in dollars, it essentially becomes cheaper for international investors who have flooded into energy markets despite a big surplus of oil.
Energy experts expect the government will report Wednesday that crude supplies are still growing, but that does not appear to be a deterrent for many investors because the dollar is so weak.
Benchmark crude for November delivery gained 62 cents to $73.89 on the New York Mercantile Exchange. At one point, prices reached $74.47, just short of the yearly high of $75 reached on August 25, when the driving season was still in full swing.
Prices have now risen for four straight days and a barrel cost 4 percent more than it did one week ago.
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