Oil Up After Weak Dollar Euro Top

MELBOURNE: Oil rose in New York after the dollar weakened against the euro amid rising unemployment claims numbers, reinforcing speculation the U.S. monetary policy could erode the value of the currency.

The contract fell after the weak dollar over other major currencies amid predictions the Fed will extend the quantitative reduction action. Fed Chairman, Ben S. Bernanke will speak about the media and the objectives of monetary policy today in Boston.

"The Federal Reserve is trying to boost the economy with capital poured. We all realize the U.S. is still entangled with economic problems and I predict the oil in the range of U.S. $ 75-US $ 85, "said Mike Sander of Sander Capital Advisors in Seattle.

The November contract rose 28 cents, or 0.3% to U.S. $ 82.97 per barrel in electronic trading in New York Mercantile Exchange, and had reached the level of U.S. $ 82.69 9:33 pm Sydney time.

Department of Energy reported gasoline reserves fell 1.77 million barrels to 218.2 million last week.

Brent crude for November delivery fell 11 cents, or 0.1% to U.S. $ 84.53 per barrel on the ICE Futures Europe Londen, yesterday.

By: Budi Prabawa Aji (Head of Public Relations of PT RNI)

Source: Bisnis.Com