Oil Prices Inch Up
December 10, 2007
• by Staff
--- Oil prices inched up today as investors considered whether last week's U.S. jobs report would prompt the Federal Reserve to change the interest rate, the Associated Press reported.
A bigger interest rate cut would make the dollar even weaker against other currencies and contribute to higher oil prices. When the dollar falls, foreign investors find oil more attractive.
Crude oil futures have declined more than 10 percent from their record-setting high near $100 in November, largely because traders believed that slower growth in the U.S. economy would cut demand for oil. In addition, oil and petroleum products are no longer viewed as insufficient for the Northern Hemisphere's winter.
After opening lower, prices recovered a little on Monday. By afternoon in Europe, light, sweet crude for January delivery was up 17 cents to reach $88.45 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, Dec. 7, the contract fell $1.95.
January Brent crude climbed 11 cents to reach $88.75 a barrel today on the ICE Futures exchange in London.
Originally posted on Fleet Financials