Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Oil rises on weaker dollar

By Blake Ellis, contributing writer


NEW YORK (CNNMoney.com) -- Oil rose above $74 a barrel on Friday after the dollar retreated from its three-month high against the euro and amid reports that Iranian troops entered an Iraqi oilfield on Thursday.

"The weakening dollar is driving what we're seeing today more than anything," said Chris Lafakis, an associate economist at Moody's Economy.com. "And that's consistent with investors' expectations for a global economic recovery."

Crude oil for January delivery rose 71 cents to settle at $73.36 a barrel after touching $74.69 earlier. Prices dipped near $71 on Thursday as the dollar climbed to its highest point since September versus the euro.

On Friday, the dollar was flat against the euro at $1.434.

Reports that Iranian forces entered an Iraqi oilfield on Thursday also increased oil demand.

"Today's oil price movement is definitely related to the Iranian forces entering the Iraqi Fauqa oil field," said Paul Ting, president of Paul Ting Energy Vision. "Although the field itself is small, the implications are potentially big as it involves the number two and number three largest oil reserve nations within OPEC."

Lafakis expects prices to reach $84 a barrel by the end of 2010 on stronger U.S. and global economies.

Gasoline prices. The national average price for a gallon of regular unleaded gas dropped to $2.589, down two tenths of a cent from the previous day's price of $2.590, according to motorist group AAA. This is the tenth consecutive day prices have declined.  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.79%
15 yr fixed3.02%3.01%
5/1 ARM3.14%3.17%
30 yr refi3.78%3.76%
15 yr refi3.03%2.99%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 21,442.25 32.22 0.15%
Nasdaq 6,250.74 16.79 0.27%
S&P 500 2,440.26 4.65 0.19%
Treasuries 2.15 -0.00 -0.09%
Data as of 3:05pm ET
Company Price Change % Change
Advanced Micro Devic... 14.34 0.37 2.61%
Oracle Corp 50.39 4.06 8.76%
Bank of America Corp... 22.97 -0.16 -0.69%
Chesapeake Energy Co... 4.58 0.06 1.22%
Gilead Sciences Inc 70.40 2.90 4.30%
Data as of 2:50pm ET

Sections

It's a tale of two toy stocks. Mattel has tanked this year, despite hiring a new CEO from Google. But Hasbro's stock has soared and is trading near an all-time high. Hasbro has the kids that toys want and Mattel doesn't. More

The man running Britain's economy has warned that uncertainty over Brexit is stopping businesses from investing in the country. More

Mark Zuckerberg explains why Facebook is moving on from just friendships to community building. More

It's not just lower earners who find college unaffordable. New data reveals that wealthier families struggle as well. More