Light, sweet crude for July delivery rose to a trading record of $139.89 a barrel today, but retreated slightly to trade up $4 at $138.86 a barrel on the New York Mercantile Exchange.
Investment bank Morgan Stanley, one of Wall Street’s biggest energy traders, was even more bullish, saying on Friday that crude may reach $150 by July 4 due to robust Asian demand and falling inventories.
The dollar fell on a weak report on New York state manufacturing activity, analysts said. Many investors buy commodities such as oil as a hedge against inflation when the dollar falls. Also, a weaker dollar makes oil less expensive to investors dealing in other currencies.
Libya and fellow members of the Organization of the Petroleum Exporting Countries have blamed factors other than supply for oil’s record run, such as the weak dollar, political tension and speculation.
Among the most bullish is Goldman Sachs, the most active investment bank in energy markets, which said last month oil could hit $200 within the next two years, driven by poor supply growth.
Courtesy: APFiled under Business News | Tags: Goldman Sachs, Inflation, New York Merchantile Exchange, Oil, Weak dollar | Comment Below