New York crude rises on dollar, Libya unrest

14th April 2011, Comments 0 comments

Crude oil prices rose Thursday in New York as the dollar fell and events in Libya against caused fears over supply.

New York's main contract, light sweet crude for delivery in May, rose $1.00 to $108.11 a barrel.

Brent North Sea crude for May delivery, however, lost 52 cents to $122.36 in London trade.

Analysts said much of the action was thanks to the dollar's slight fall against the euro and other currencies, a move which makes dollar-priced crude cheaper for other currency holders.

"The dollar has much to do in terms of supporting these prices and getting us back up," said John Kilduff of Again Capital.

Crude prices fell by six percent on Monday and Tuesday before rebounding slightly.

Concerns about tight supplies spurred by revolts in the Arab world had driven crude oil prices recently above two-year highs.

But a warning from Goldman Sachs on Tuesday that investors should take profits from the overinflated commodities markets sent oil prices tumbling.

The International Monetary Fund has also warned this week that soaring oil prices are a risk to global growth.


© 2011 AFP

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