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Oil leaps over $134 on weak dollar, Morgan report
Oil soared by more than $6 a barrel to over $134 on Friday, bringing gains in the last two days to $12 as the dollar weakened further on a jump in the jobless rate in the United States.
- Reuters
- Published: 18:09 June 6, 2008
London: Oil soared by more than $6 a barrel to over $134 on Friday, bringing gains in the last two days to $12 as the dollar weakened further on a jump in the jobless rate in the United States.
Remarks by Israel's transport minister that an attack on Iranian nuclear sites looked "unavoidable" and a Morgan Stanley report predicting oil could reach a record high of $150 by July 4, also sent crude prices roaring upwards.
"We are calling for a short-term spike in oil prices," the bank said.
US light crude for July delivery was up $6.66 at $134.45 a barrel by 1325 GMT, within a dollar of a record high.
Oil had surged $6 in after-hours trading on Thursday in the US, erasing two days of sharp losses triggered by worries that high oil prices were starting to dent demand.
Crude hit a record high of $135 last month.
London Brent crude rose $4.59 to $132.13.
The dollar fell further after figures showing a jump in the US unemployment rate to 5.5 per cent last month, which was higher than analysts were expecting.
The dollar has fallen by more than one percent since European Central Bank President Jean-Claude Trichet said on Thursday a number of policymakers wanted higher interest rates and a hike was possible as soon as next month.
Investors have used oil and other commodities as a hedge against the weaker dollar and inflation as the housing crisis and high fuel prices batter the US economy.
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