Oil Edges Up In Asia, Stays Above $140; Weak US Dollar
Oil prices edged higher Tuesday in Asia, staying above $140 a barrel, amid concerns about tensions between Iran and Israel and a weakening dollar.
Oil also rose on expectations the European Central Bank will likely raise interest rates at its next meeting on Thursday, a move that would help strengthen the euro against the dollar.
As the dollar has weakened, investors have been piling into oil contracts, betting that they will gain, thereby offsetting the dollar’s decline. Since the start of the year, crude has shot up nearly 50 percent.
Light, sweet crude for August delivery rose 35 cents to $140.35 a barrel in Asian electronic trading on the New York Mercantile Exchange, midday in Singapore.
On Monday, the contract soared to a record $143.67 a barrel. It later fell back to close at $140.00 on reports of weakening U.S. oil demand and end-of-the-quarter profit-taking by traders.
