The value of the dollar

NEW YORK — Oil prices jumped above $70 a barrel Thursday after the government said that the economy may be faring better than previously thought.

Benchmark crude for August delivery added $1.56 to settle at $70.23 a barrel on the New York Mercantile Exchange. In London, Brent prices increased $1.45 to settle at $69.78 a barrel on the ICE Futures exchange.

The value of the dollar again is playing a strong role in the price of crude.

Crude prices have fallen off after peaking above $73 a barrel earlier this month as the dollar strengthened.

Most experts agree prices on Nymex, and at the local gas station, hit levels that weren’t supported by meager demand for energy.

They blame investment money that has flowed into the market, using oil as a hedge against inflation.

Retail gasoline prices fell for the first time in nearly two months Monday, and have fallen every day since. The national average lost another 0.9 cents to $2.667 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service.

A gallon of gas is 24.2 cents more expensive last month, but it’s still cheaper than last year when prices topped $4 a gallon.

Stores of natural gas, a key energy source for power plants, also continued to build as manufacturers slowed production and major employers trimmed operations.

The government reported Thursday that natural gas supplies rose again last week, though less than analysts expected.

In other Nymex trading, gasoline for July delivery rose 5.58 cents to settle at $1.8983 a gallon and heating oil gained 3.82 cents to settle at $1.7763 a gallon. Natural gas for July delivery advanced 8.3 cents to settle at $3.844 per 1,000 cubic feet.



by the associated press