Oil Aiming at $100 a Barrel
The price for U.S.-traded WTI crude is inching its way back to $100 a barrel today as traders respond to the civil unrest in North Africa and the Middle East following last week’s killing of four Americans in Benghazi, Libya. The American deaths resulted from the posting on the Internet of an anti-Islam video that led to demonstrations in Benghazi and other parts of the Muslim world.
In addition to the anti-U.S. demonstrations, last week’s FOMC announcement is causing the dollar to lose strength, which typically raises the price of crude. The dollar is nearly flat today, but it fell sharply at the end of last week. WTI crude for October delivery is trading at $99.40 a barrel on the Nymex exchange this morning, and the December price has touched $100 a barrel earlier this morning.
Gasoline prices are also higher. According to the AAA Fuel Gauge Report, the national average pump price for regular gasoline today is $3.862, up from $3.828 a week ago and $3.72 a month ago.