Oil Prices Soar, Dollar Dives


11-07-07, 9:49 am

Caracas, Nov 7 (Prensa Latina) Oil prices reached a record high Wednesday affected by the drop of the dollar compared to currencies like the Euro and sterling pound.

According to reports on the exchange markets, the Euro registered a record of 1.4704 dollars per unit, in views of the possibility that the Federal Reserve might raise interest rate adjustments.

With this behaviour, the US currency has already accumulated a 9.4 percent drop to the Euro so far this year, with investments funds targeting basic products such as oil.

In addition, Chinese financial authorities have announced the possibility of diversifying their foreign reserves to minimize effects of the weak dollar.

Amid this panorama, the West Texas Intermediate (WTI) oil price rose by 1.99 dollars (2 percent), reaching a record of 98.58 dollars per barrel of oil for December contracts.

Meantime, the Brent quality of the International Petroleum Exchange, used as reference for 60 percent of world oil trade, surged to a record of 95.19 dollars per each barrel of 159 liters, accounting for a 2.1 percent increase.

Markets are also waiting for the report on the situation of commercial oil reserves in the US, with predictions pointing to a drop in inventories.

From Prensa Latina