Oil Climbs to Six-Month High in New York as Dollar Tumbles on Fed Stimulus

[Purveyor]

Source: Bloomberg

Oil rose to the highest level in six months in New York as the dollar tumbled after the Federal Reserve expanded bond purchases to spur the economy in the U.S., the world’s biggest crude consumer.

Prices climbed for a fourth day, the longest move higher since September, as the dollar fell to a nine-month low against the euro, boosting the appeal of commodities as an alternative investment. The Fed said yesterday it will buy an additional $600 billion of Treasuries through June.

“We continue to be completely dominated by views of the dollar,” said Addison Armstrong, director of market research at Tradition Energy, a Stamford, Connecticut-based broker. “We’re breaking through to some new highs here, and the bulls have a lot of ammunition to test the upside.”

Oil for December delivery rose $1.80, or 2.1 percent, to settle at $86.49 a barrel on the New York Mercantile Exchange, the highest price since April 6. Futures have gained 7.6 percent in the past year. Brent crude for December settlement advanced $1.77, or 2.1 percent, to $88.15 a barrel at 2:36 p.m. on the ICE Futures Europe exchange in London.

Read more: http://www.bloomberg.com/news/2010-11-04/oil-climbs-to-six-month-high-in-new-york-as-dollar-tumbles-on-fed-stimulus.html

---

Just f'n great.

Our local gasoline price is now just shy of $3gallon and don't even ask me about heating oil.

[dkofos]

1. Pretty much what Ravi Batra said would happen on Thom Hartmann's show today.

http://www.ravibatra.com/

[fascisthunter]

2. YUP... was listening to him too

[DallasNE]

3. $50B Stimulus Filibuster

Forced the Fed to attempt stimulation and this is the only monetary arrow left in Bernanke's quiver so doing nothing was an even worse option. Bernanke now needs to get up on the pulpit and loudly stress the need for a fiscal stimulus.

[TheWatcher]

4. But this is part of "The Recovery" everyone wanted.

I mean, come on, you want the Stock market to keep going up infinitely, don't you America?

You're not going to let a little mamby-pamby inflation in Food and Energy Prices get you down, are you?

What's a little "temporary" Dollar Devaluation among friends?

Come on, The Fed and the Treasury believe in a "Strong Dollar Policy."

They said so.

They love you, and would never lie to you or hurt you or this Golden Age of Prosperity they have created with their New Monetization.

Lie Back and Enjoy It.

It's Good, Good, Good For You.

[Purveyor]

6. +1

[moonbatmax]

5. Hey, if you like it now...

just wait 'til gas hits four bucks per at the pump next summer!:woohoo: