New York's main futures contract, light sweet crude for July delivery rose to US$66.8 a barrel, while Brent North Sea crude for delivery increased to US$66, moving in sync with stock markets in Asia. Oil prices have risen to 7 month highs triggered by increasing regional equities markets and a weakening US dollar. This has led to a situation where investors are buying commodities as the US dollar weakens since a weak US currency makes dollar-priced oil cheaper for holders of stronger currencies and in turn, tends to stimulate demand and push prices higher.
This price hike is viewed by market players as fragile, as global energy demand continues to be weak, resulting in a largely contradictory situation in oil markets. As economies continue to deteriorate, and though fundamentals remain very weak, oil prices have increased by 50% December 2009 amid excess oil supply. Oil and gasoline prices have touched record highs for the year despite expectations that OPEC will not cut production again and General Motors Corp. has filed for bankruptcy.
OPEC members have met in Vienna before a meeting on Thursday. OPEC is unlikely to add to 4.2 million bpd production cuts that it has announced since September
02-Jun-09 
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