Oil hits 2009 high, holds above $75

Crude settles above $75 a barrel for the first time this year as the dollar weakens and the outlook for energy demand brightens.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Ben Rooney, CNNMoney.com staff reporter

oil.jpg.mkw.gif
Click the chart for current oil prices.

NEW YORK (CNNMoney.com) -- Oil prices surged above $75 a barrel Wednesday for the first time this year as the U.S. dollar remained weak and investors bet that global energy demand is poised to recover.

Crude for November delivery rose $1.03, or 1.39%, and settled at $75.18 a barrel, after climbing to a high of $75.40 a barrel earlier in the session. The last time oil prices ended trading above $75 was exactly one year ago when they settled at $78.63.

Wednesday was the first time oil rose above $75 a barrel in 2009 and comes after prices traded between $65 and $75 a barrel since May.

"The markets continue to get positive indications about the economy," said John Kilduff, an energy analyst at MF Global in New York. "We've broken out of the $65-$75 range and we're clearly headed for $80 a barrel."

Wednesday's advance came as the dollar slumped to a 14-month low on speculation that U.S. interest rates will remain low for a longer-than-expected time.

The dollar index, which gauges the greenback's value against a basket of rival currencies, slid to a low of 75.45, its weakest level since August 2008.

A softer greenback makes dollar-denominated commodities such as crude oil more appealing to investors using other currencies.

Oil prices were also supported by optimism about the global economic recovery and upbeat forecasts for energy demand next year.

Stocks rallied after stronger-than-expected quarterly results from finance firm JPMorgan Chase (JPM, Fortune 500) and chipmaker Intel Corp. (INTC, Fortune 500) fueled optimism about the economic recovery.

The Dow Jones industrial average has hit 10,000 -- a level not seen since Oct. 3, 2008, when it reached 10,124 during the trading session.

Asian and European markets also rallied, with an index of global shares climbing to its highest level in a year.

On Tuesday, the Organization of the Petroleum Exporting Countries said a recovering world economy could boost crude demand by 700,000 barrels per day next year.

The improved outlook came after the U.S. Energy Information Administration and the Paris-based International Energy Agency raised their 2010 demand forecasts last week.  To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
50 years of the Ford Mustang Take a drive down memory lane with our favorite photos of the car through the years. More
Cool cars from the New York Auto Show These are some of the most interesting new models and concept vehicles from the Big Apple's car show. More
8 CEOs who took a pay cut in 2013 Median CEO pay inched up 9% in 2013 to $13.9 million. But not everyone got a bump last year. Here are eight CEOs who missed out. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.