Crude Oil Rises to Record $90 / Dollar drops against Euro
Posted by ecoshift on October 18, 2007
Crude Oil Rises to Record $90 After Dollar Drops Against Euro
By Gavin Evans
Oct. 19 (Bloomberg) — Crude oil rose to a record $90 a barrel in New York after the U.S. dollar fell against the euro, enhancing the appeal of commodities as an investment.
Investors purchased oil on speculation the Federal Reserve will cut borrowing costs to bolster the U.S. economy when the bank next meets Oct. 31. Interest-rate futures show a 70 percent likelihood the Fed will lower its target rate for overnight loans a quarter-percentage point to 4.5 percent.
“There’s still no end in sight in terms of what people are willing to pay,” said Bob Frye, commodity broker at Access Futures & Options Trading in Woodlake, California. “With the weakness in the dollar” we may get to $96 if prices stay much above $90, he said.