Commodity Corner: Oil Hits Another High

Front-month crude oil settled at its highest point in nearly 32 months Friday, ending the day at $112.79 a barrel.

Oil futures surged 2.3 percent amid fears that the global oil supply will tighten, thanks in part to pessimism about any near-term resolution to the Libyan conflict. Moreover, investors are wary about fighting in other major oil-producing countries in Africa and the Middle East.

Also pressuring oil upward was a weaker dollar, which fell 0.9 percent against the euro Friday. Oil and other commodities priced in dollars become a better value for those holding other currencies when the euro strengthens against the dollar. On Thursday the European Central Bank decided to raise interest rates by 0.25% in an effort to curb inflation. The dollar has grown weaker recently given the improbability that the Federal Reserve will enact similar measures to tighten U.S. monetary policy.

Crude oil fluctuated from $110.11 to $112.75 during Friday's trading. Since last Friday, oil has gained 4.5 percent.

A milder, more springlike weather forecast for much of the Upper Midwest and Northeast once again contributed to a decrease in natural gas futures Friday. May natural gas settled two cents lower to end the day at $4.04 per thousand cubic feet.

Natural gas traded within a range from $4.01 to $4.08. For the week, it is down 7.3 percent.

May gasoline gained seven cents to settle at $3.26 a gallon. During Friday's session, gasoline peaked at $3.25 and bottomed out at $3.18. Front-month gasoline is up 3.5 percent for the week.

Matthew V. Veazey has written about the oil and gas industry since 2000. Email Matthew at


Our Privacy Pledge

More from this Author
Matthew V. Veazey
Senior Editor | Rigzone
 -  How to Sell Yourself in the Job Search... (Aug 21)
 -  BLOG: The Best and Worst Places in the... (Aug 17)
 -  HOW COOL IS THAT!: Geologist, Author, ... (Aug 17)
 -  How to Sell Yourself in the Job Search... (Aug 14)
 -  How to Sell Yourself in the Job Search... (Aug 8)

Most Popular Articles

Brent Crude Oil : $51.87/BBL 0.40%
Light Crude Oil : $47.64/BBL 0.56%
Natural Gas : $2.94/MMBtu 0.67%
Updated in last 24 hours