Oil Sets '09 High Above $75 on Economy Optimism

By: Reuters | 14 Oct 2009 | 10:01 AM ET

Oil surged for a fifth day on Wednesday to a 2009 high above $75 a barrel, boosted by a weak dollar and optimism about a global economic rebound that will lead to higher energy demand.

The dollar, which fell to its lowest in more than a year against a basket of currencies, also boosted gold, which hit a record. Dollar weakness makes oil and bullion more affordable for non-dollar holders.

"The recent rise in oil prices is not driven by fundamentals but by financial market developments and hopes that oil demand will recover sooner rather than later," said Carsten Fritsch, analyst at Commerzbank. "But we still need some confirmation of this hope."



I remember one of our execs came into recurrent and said that our bid'ness plan could withstand $110/barrel ol'. This was BEFORE the economic downturn and cuts in capacity industry wide. Does anyone know if this figure is still accurate, or if the company has revised their figures based upon recent developments in the oil market, falling airfares, and the falling dollar?

Thanks...