Oil, fuel prices rise as dollar, temperatures fall
Monday, October 12th, 2009 | 
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Posted by John under: Days of Lot,Sins of Sodom
Energy prices rose Monday as an October chill across much of the U.S. sent thermometers plummeting along with the weakening U.S. currency.
Days Of Lot—Sins of Sodom—Fullness of Bread
“Behold, this was the iniquity of thy sister Sodom, pride, fulness of bread, and abundance of idleness was in her and in her daughters, neither did she strengthen the hand of the poor and needy.”
—Ezekiel 16:49
“The early blast of winter is giving oil a bit of a boost,” said PFGBest analyst Phil Flynn.
Benchmark crude for November delivery gained $1.70 to $73.47 on the New York Mercantile Exchange. Heating oil rose 5.4 cents to $1.907 a gallon and natural gas jumped 15 cents to $4.92 per 1,000 cubic feet.
Still, there are enormous supplies of all three due to the recession and there is little chance of a shortage in the near term.
The weakened U.S. currency, however, continues to lure global investors who can buy oil for a bargain because it is priced in the dollar. There are billions going into the energy markets despite huge surpluses, especially in natural gas.
The U.S. dollar index, which tracks the dollar against other major currencies, is down 14% since early March, and crude has jumped by about $20 per barrel.
There are also hopes that energy demand will rise as the economy recovers and early indications from major corporations supported that optimism.
Retail gasoline prices edged up overnight to an average $2.482 a gallon, but are still below $2.50 a gallon. Last year, a gallon of gas cost about $3.25 at this time, according to auto club AAA, Wright Express and Oil Price Information Service. Prices are 10.2 cents below levels of a month ago and 93.2 cents down from a year ago.
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