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Crude Oil Reaches Five-Month Record as Dollar Falls

October 6, 2010 at 20:40 by Vladimir Vyun

Prices for crude oil hit the highest level in five months as the weaker dollar increased appeal of commodities as an alternative investment. Ben Bernanke, the Chairman of the Federal Reserve, suggested that a program of bond purchases should be restarted. Resulting talks about quantitative easing caused the dollar to fall 0.6 percent against the euro and 0.4 percent versus the yen. The Dollar Index, tracking the greenback versus its six major counterparts, dropped 0.4 percent to the lowest level since January.

Gains of crude may be limited, though, by increasing supplies and outlook for declining demand. Crude oil inventories rose 3.09 million barrels to 360.9 million last week.

November settlement for Brent crude oil rose $0.26 (0.3 percent) to $85.10 per barrel on ICE. Futures touched $85.88, the highest level since May 5th.

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