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by Zuzana Hanzelova

Monday in New York started with sharply rose oil futures, and the streak of inconsistency continued. Weaker dollar and premonition, that the Federal Reserve will cut interest rates took buyers through into the market. While the dollar is falling in U.S., the oil futures rose and many analyst have blamed the weakening dollar. Last month, oil's run up to nearly $100 a barrel, which meant, that it was more attractive to foreign investors. Interest rate cuts tend to weaken the dollar even more, exasperating the effect. "I think everyone's anticipating a quarter-point cut right now," said James Cordier, president of Liberty Trading Group, in Tampa, Fla. Although the anticipation helped crude to regain some ground, after futures nearly fell $2 on Friday, Light crude rose from $1.20 to $89.48 a barrel on the New York Mercantile Exchange. At the pump, gas prices fell 2 cents during the weekend to an average of $3.003 a gallon, according to AAA and the Oil Price Information Service. The prices are almost 11 cents lower than in November, when oil hit $100 a barrel. While oil prices has been mostly down, trading has been erratic. January futures fell $1.95 on Friday after rising $2.74 on Thursday. "We're covering the same ground and not getting anywhere," said Steve Bellino, senior vice president of energy at MF Global LLC. Other Nymex petroleum futures rose Monday. Heating oil for January rose 2.57 cents to $2.5304 a gallon, while January gasoline rose 3 cents to $2.299 a gallon. January natural gas futures fell 8.1 cets to $7.074 per 1.000 cubic feet on the Nymex. January Brent crude rose $1.01 to $89.65 a barrel on the ICE futures exchange in London.

by Zuzana Hanzelova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:54 PM