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JAOil Price Surges
Oil prices rose today by nearly sixteen percent in the largest one day gain in history. The price for US crude for October oil delivery, settled up $16.37, or 15.7 percent at $120.92 a barrel propelled by the weakness of the dollar and a fierce round of short selling of crude futures.
Oil prices had been plummeting since peaking at $147.27 a barrel on July 11, as investors bet that sluggish global growth would diminish oil demand.
Analysts say that there are several factors involved in the on day price spike. For one, the weak dollar is raising the purchasing power of brokers using other currencies. Short selling of oil futures has also put upward pressure prices. and many investors were buoyed by news that China increased crude imports over 11 percent in August. One final factor is a report that top oil exporter Saudi Arabia has cut back on oil supplies to major international oil companies and US refiners since the start of September.
