Rising Oil Prices with US recession – Navtej Kohli
Oil continued its relentless climb on Wednesday, hitting a new, record high of $110 a barrel on Wednesday.
Rising oil prices are in stark contrast to a record low for the dollar against the euro on Wednesday when the European currency briefly lingered above the $1.55 for the first time. (See: ” IMF Meddles in Market, Euro Soars”)
Investors are trying to find a safe haven in black gold as the dollar continues to hit new lows and speculation continues that the U.S. Federal Reserve will continue to cut interest rates next week. Light, sweet crude for April delivery rose $1.17 to settle at $109.92 a barrel on the New York Mercantile Exchange after earlier rising to a new trading record of $110.20.
Chasing the price of crude is the price per gallon of gasoline which, according to the Automobile Association of America and the Oil Price Information Service, hit a new record when it rose by 1.9 cents overnight to $3.246 a gallon.