The upward move in prices continues, reports CNBC-TV18. It is hovering near the USD 126 per barrel mark after it rose to those levels on Friday as a result of dollar's weakness against the euro, prompting investors to buy commodities as a hedge against the currency's decline. In after hours trading, crude is trading at USD 125.49 per barrel down 0.47 cents on the .
Diane Garnick of said, “We cannot denominate oil in terms of dollar. If we look at the price of oil and go back to 2005, we see that the price of oil has doubled. It is up 100%. However, if we take the same oil and denominate in euros it is up around 50%. So, there is an increase in the price of oil but one of the big issues here is that we are only denominating it in terms of dollars.”
Stewart Schweitzer of said, “This is not just a US issue, it is a global issue. It is affecting everybody around the world and the problem here is the problem of big inflation risk with oil and other commodity prices moving so high.”
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