SHOOT: Not a lot is happening on the oil markets themselves right now. In fact demand and supply are fairly static. So why are oil prices going up? Well, because the dollar, and the price of oil is measured in dollars, is depreciating. That means as the value of the currency goes down, the real value of oil necessarily has to go up.
If you live in country besides America you're probably seeing your currency strengthening against the dollar. That means, even if oil prices (expressed in dollars) are going up, they're really staying the same. And so, by the way will the value of energy-related company's like SASOL and CHEVRON.
NEW YORK (AP) -- Oil prices rebounded Thursday, buoyed by the first drop in unemployment numbers since January and renewed expectations that crude will extend its rally this year.
Benchmark crude for July delivery was up $2.34 to $68.46 a barrel on the New York Mercantile Exchange. On Wednesday, the contract tumbled $2.43 to settle at $66.12.
In London, Brent prices rose $2.45 to $68.33 a barrel on the ICE Futures exchange.
Oil prices, which have rallied for three months, soared this week to their highest levels since November. Crude now fetches nearly twice its February price, mostly on the expectation that the dismal U.S. economy could be stabilizing.
The government said Thursday that the nation's unemployment rolls fell for the first time in 20 weeks. The Labor Department said the number of people filing for jobless benefits dropped by 15,000 to 6.7 million.
However, experts say the market is filled with more enthusiasm than is warranted by the huge surplus of petroleum in the U.S.
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