Oil settles above US$77
NEW YORK, United States
Oil prices spiked above US$77 a barrel Tuesday as the US dollar weakened and the stock market climbed on upbeat economic news.
Benchmark crude for March delivery rose US$2.88 to settle at US$77.01 a barrel on the New York Mercantile Exchange, after hitting a day high of US$77.28. In London, Brent crude was up US$3.17 to settle at US$75.68 on the ICE futures exchange.
The US dollar has made strong gains on the euro during the past weeks as some members of the European Union have struggled with large budget deficits. But yesterday the dollar tumbled against the euro as corporate earnings and other positive economic reports helped offset worries about debt and credit across the globe.
The euro jumped to US$1.3757 by afternoon in New York from US$1.36 late Monday, as the EU appeared to take a tougher stance on Greece’s deficit plights.
Because crude is traded in dollars, it becomes more expensive when the dollar falls and allows investors holding other currencies like the euro to get more oil for less.
Oil has traded between US$69 and US$84 a barrel for the last few months as investors struggle to gauge global crude demand.
