April 9, 2011

Crude rose above $112 in New York for the first time in 30 months and Brent topped $126 on skepticism that Libyan output will rebound when fighting ends and as a weaker dollar increased demand for raw materials.

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Oil climbed 2.3 percent in New York as Barclays Capital said strikes on Libyan fields by forces loyal to Muammar Qaddafi ended hopes for a prompt export resumption, and may send prices toward $130 a barrel. Commodities also gained as the dollar fell to the lowest level in more than a year against the euro.

“Since the Libya unrest began, there’s been a re-coupling of the inverse relationship between the dollar and oil,” said Stephen Schork, president of the Schork Group Inc. in Villanova, Pennsylvania. “The Middle East is being used as cover by speculators looking to send oil higher.”

Crude oil for May delivery rose $2.49 to $112.79 a barrel on the New York Mercantile Exchange, the highest settlement since Sept. 22, 2008. Futures advanced 4.5 percent this week and are 32 percent higher than a year ago.

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