Oil prices reach new highs this year Tuesday as dollar plummets
October 15, 2009 · Posted in Oil and Gas · Comment
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. Read more
