The AP reported today that Benchmark crude for October delivery rose $3.15, to $71.17 a barrel, on the New York Mercantile Exchange, noting that the falling dollar is pushing investors to commodities such as oil and gold.
The dollar fell to a low for the year Tuesday against the euro and several other currencies as gold prices surpassed $1,000 an ounce for the first time since February.
Investors often turn to commodities as a hedge against inflation and dollar weakness, and gold seems to be pulling oil along for the ride, said PFGBest analyst Phil Flynn.
“The move in metals has oil reluctantly rallying higher,” Flynn said in his morning report. “Normally, crude oil would be worrying about the upcoming OPEC meeting as opposed to worrying about the gold market.”
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