Oil $98

From the department of that-was-quick:

Crude oil rose above $98 a barrel in New York to a record close after the U.S. dollar declined to a new low against the euro.

``As the dollar falls, U.S. refiners need to bid more to compete with overseas consumers,'' said Rick Mueller, an analyst with Energy Security Analysis Inc. in Wakefield, Massachusetts. ``Investors look at crude oil as an inflation hedge. The weaker dollar also cushions the effect of higher oil prices in other countries so demand doesn't take the hit you might expect.''

The dollar dropped on speculation that the Federal Reserve will lower interest rates a third time this year, which prompted investors to buy energy and metals futures. Royal Dutch Shell Plc reported a fire at an oil-sands crude production plant in Alberta, potentially cutting shipments to U.S. refineries.

It's all very well to see oil go up and then the dollar go down and say that one balances out the other. However, if someone did the math, you'd probably find out that the rise in oil prices was higher (precentage wise) than the drop in the dollar.

And, goodness me, that was very fast rise in the last 24 hours! It was only about $92 a few days ago.