Oil rises as dollar falls
Monday, May 20, 2013
NEW YORK (AP) — The price of oil rose Monday, taking its cue from the stock market and the dollar.
Benchmark oil for June delivery gained 69 cents to close at $96.71 a barrel on the New York Mercantile Exchange.
Oil moved higher as U.S. stock markets reversed early losses around midday. Although stocks slipped in the afternoon, a weak dollar propped up oil prices.
Since oil is traded in dollars, a weaker dollar makes crude and other commodities more appealing to investors holding other currencies. The euro rose to 1.2897 from $1.2829 Friday. The dollar fell to 102.29 yen from 103.18 Friday.
At the pump, the average price for a gallon of gas is at $3.65 for the first time since late March. Unplanned refinery downtime in the Midwest has caused supply shortages and sent gas prices soaring in Minnesota, North Dakota and a few other states.
The average price in Minnesota is $4.275, up from $3.44 a month ago. The average in North Dakota is $4.23, compared with $3.78 just a week earlier.
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