NEW YORK -- Crude futures surged back above 128 U.S. dollars a barrel Thursday as the dollar dropped against the euro on European Central Bank's statement of possible interestrates rise.
Light, sweet crude for July delivery rose 5.49 U.S. dollars to settle at 127.79 dollars a barrel on the New York Mercantile Exchange (NYMEX), easily erasing the loss earlier this week.
In London, Brent crude futures for July delivery rose 5.44 dollars to settle at 127.54 dollars a barrel on the ICE Futures exchange.
European Central Bank President Jean-Claude Trichet suggested on Thursday that the bank may raise interest rates in order to cut inflation. The euro rebounded and gained strongly against the dollar, which sent the oil prices surging to as high as 128.26 dollars a barrel during the intraday trading on NYMEX.
U.S. Federal Reserve Chairman Ben Bernanke indicated on Tuesday that more interest rate cuts are unlikely. His comments strengthened the dollar, helping bring down the oil prices.
Light, sweet crude for July delivery rose 5.49 U.S. dollars to settle at 127.79 dollars a barrel on the New York Mercantile Exchange (NYMEX), easily erasing the loss earlier this week.
In London, Brent crude futures for July delivery rose 5.44 dollars to settle at 127.54 dollars a barrel on the ICE Futures exchange.
European Central Bank President Jean-Claude Trichet suggested on Thursday that the bank may raise interest rates in order to cut inflation. The euro rebounded and gained strongly against the dollar, which sent the oil prices surging to as high as 128.26 dollars a barrel during the intraday trading on NYMEX.
U.S. Federal Reserve Chairman Ben Bernanke indicated on Tuesday that more interest rate cuts are unlikely. His comments strengthened the dollar, helping bring down the oil prices.
