Commodities are rallying again today on Wall Street. Brent crude oil has blown through the key point of resistance of $80 per barrel, while wholesale gasoline prices are following along and have broken through $2.00 per gallon. Oil is currently trading at $81.37 per barrel. Gas is at $2.0602.
Wall Street is enjoying another day of rally today. The DOW is up just over 30 points, NASDAQ is up more than 12 points, largely on the backs of Apple (AAPL) currently up more than 9 points, and some of the memory chip stocks after Sandisk (SNDK) blew out earnings this morning too.
Oil had touched $80 per barrel pricing on Monday,during the rally, but with the stronger dollar yesterday, had retreated and closed out the day just under $79 per barrel. Today, as the dollar declined again, oil surged, currently up over $2.00 a barrel on the day.
Oil trades in U.S. dollar everywhere, so the retreating value of the dollar will continue to drive oil prices up around the world.
Refineries are hurting as the dollar drops. They are forced to purchase crude oil at the higher prices, but have to sell with lower profit margins. It is possible that oil refineries will have to lower their dividends in the near future if this trend continues.
It looks like today would be a good day to top off that gas tank on your vehicles.
Written by Shelby Bateson
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