Consumer Energy Report is now Energy Trends Insider -- Read More »

By Samuel R. Avro on Feb 16, 2010 with no responses

Crude Oil sees Largest Spike in 4 Months, Settles Above $77 a barrel

Tags: Crude Oil, iran, OPEC

A weakened dollar and renewed tensions over pending sanctions against Iran caused a huge surge in the price of crude oil futures during Tuesday trading in New York.

The U.S. dollar slipped against the euro as the feel in the market was that the European currency had dropped too far in recent weeks in the wake of Greece’s economic problems. When the dollar falters, traders usually pour more of their money into commodity investments.

U.S. Secretary of State Hillary Clinton’s meeting with Saudi Arabia’s King Abdullah in an effort to lobby support from Gulf states and China for sanctions against Iran also heightened tensions in the oil-rich region. Iran is OPEC’s second-largest producer of crude oil.

Crude oil for March delivery rose $2.88 to settle at $77.01 a barrel at the close of floor trading on the New York Mercantile Exchange. Trading was rather light on Tuesday with Asia celebrating the Lunar New Year.

The 4 percent spike was the largest percentage gain since late September.