Home / Markets / Industries / Energy
Tuesday, November 04, 2008
Oil Jumps as Dollar Declines
Kathryn Elizabeth Tuggle
FOXBusiness
Oil prices rose by 11% on Tuesday as the dollar took a tumble against the yen, the pound, and many other currencies.
Light, sweet crude oil moved parallel to global markets, which changed from Asia to Europe. The euro went up by more than 4 cents today to $1.30.
The price of crude oil for December delivery rose by $6.82 per barrel to reach $70.73 on the New York Mercantile Exchange after hitting an intraday high of $71.77.
However, consumers at the pump haven’t seen a bottom on prices yet. The cost of gasoline stands at $2.39 per gallon of regular unleaded, and continues to fall, according to the AAA Fuel Gauge Report.
Gas continues to decline in price since oil fell around $80 from its peak this summer of $147 per barrel. The month of October alone saw prices go down by 32%.
Heating oil and natural gas both gained. Heating oil rose 21 cents to $2.20 per gallon, and natural gas for December delivery added 46 cents to $7.30 per every 1,000 cubic feet.
The price of gold also rose today by 3% in light of the weak dollar. Gold has risen by more than 7% since plummeting to a one-year low of $680.80 at the end of October.
Platinum, on the other hand, has lost over half of its value in the last three months due to slacking car sales.
FOX Translator
No data currently available.
No data currently available.
If you've seen TV footage of an active trading pit, you've probably noticed the atmosphere is uproarious and wild. The reason for all the shouting? Open outcry.
On exchange floors that use the open-outcry system, traders shout prices they want to sell while others yell back the price they want to buy at. They also use hand gestures to communicate with each other.
This system has been used for a long time, but is being replaced with modern technology. Some argue electronic exchanges can do the job faster and more accurately. One of the few exchanges that continue to use open outcry is the New York Mercantile Exchange.
