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Published: November 03, 2009 08:45 pm
ECONOMY: Gas prices up 5 cents in the Lockport area
Staff Reports
Lockport Union-Sun & Journal
Gas prices in the Lockport area are up about a nickel to $2.84 this week, AAA said Tuesday. The national price for gas is also up, but only by a penny to $2.68, while oil prices continue to hover around the $80 mark.
According to the AAA Fuel Gauge, oil prices ended the day Monday up a little more than a dollar, ending at $78.17 on the New York Mercantile Exchange. Market-watchers cited the ongoing weakness of the dollar and positive economic reports on Chinese manufacturing as the major reasons for the day’s climb, AAA said.
The dollar fell in value against the euro on Monday, as investors confronted renewed concerns about the U.S. financial sector following the announced bankruptcy of the major banker CIT Group over the weekend
As the dollar weakens, oil and other commodities become cheaper for foreign investors to buy, which then drives up the market price. Also, oil is a physical good that can be used by investors to protect their portfolios from declines in the dollar’s value.
In China, news that manufacturing activity has reached an 18-month high gave investors hope for a strengthened economic recovery and helped push prices higher, as well.
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