Oil Tops $99 as Dollar Sinks

Weak greenback and strong demand could send crude over $100 a barrel today
By Rob Quinn,  Newser Staff
Posted Nov 21, 2007 4:05 AM CST
An oil refinery in Whiting Ind. is seen Wednesday, Nov. 7, 2007. Oil prices stalled in their climb toward $100 a barrel Wednesday after a government report said oil inventories fell less than expected...   (Associated Press)
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(Newser) – The price of oil hit a record high mere pennies from $100 a barrel and the dollar sunk to a new low in early trading today. Oil hit $99.29 but slipped back to $98.64. With cold weather hitting the US, and OPEC supplies limited, some analysts think oil prices could hit the $100- a-barrel milestone as early as today. The continued drop in the dollar against other currencies is helping fuel the rise.

Speculation that the Fed will cut interest rates for the third time this year helped send the dollar to a new low against the euro and other currencies, making oil and other commodities a better buy for holders of those currencies. The US Energy Department is scheduled to release its weekly report on inventories later today.