Good Morning. Futures Movers March 31, 2011, 10:12 a.m. EDT Oil rises past $106 on Libya, weaker dollar By Claudia Assis, MarketWatch SAN FRANCISCO (MarketWatch) â Crude-oil futures on Thursday traded at their best in 30 months, reacting to news rebels in Libya lost ground to forces supporting the government and getting additional support from a weaker dollar. Crude for May delivery (NEW:CLK11) added $2.08, or 2%, to $106.37 a barrel on the New York Mercantile Exchange. It earlier traded as high as $106.77. The dollar lost ground versus the euro and other major currencies after a report showed inflation in the euro zone rose more than expected, boosting expectations the European Central Bank will raise interest rates soon. Read more about currencies. In Libya, rebels tried to regroup after being outgunned by forces loyal to Col. Moammar Gadhafi, and a top regime official defected to the U.K. âAn end to the fighting in Libya soon is thus not in sight and the resumption of oil shipments has moved into the far distance,â analysts at Commerzbank said. Libyaâs foreign minister, Moussa Koussa, defected to the United Kingdom on Wednesday. According to British authorities, Koussa, a former intelligence chief under Gadhafi, did not seek a deal before flying to the U.K. and could face prosecution. The world has scrambled to replace the light, sweet Libyan oil that flowed mostly to Europe and Asia, with its replacement from Gulf states of a heavier, harder-to-refine crude. Other energy products tracked crude higher, with the exception of natural gas. Natural gas for May delivery (NEW:NGK11) declined 2 cents, or 0.6%, to $4.33 per million British thermal units after rallying 2.2% the previous session. The Energy Information Administration is scheduled to report its data on natural gas supplies at 10:30 a.m. Eastern. Analysts polled by Platts expect a decline of 1 billion cubic feet to 5 billion cubic feet for the week ended March 25. Gasoline for April delivery (NEW:RBJ11) , a contract that expires at the end of floor trading Thursday, rose 5 cents, or 1.7%, to $3.12 a gallon.
Been having internet connection problems all morning. Surprised at such a big ramp up. But the reasons are clear.