Oil surges $6 – crosses $121 mark

NEW YORK (CNNMoney.com) — Oil surged more than $6 a barrel on Thursday to touch $122 a barrel, as a falling dollar and renewed concerns over the credit crunch motivated investors to move their money back into commodities.

U.S. crude for October delivery rose $5.51 to $121.07 a barrel, having reached as high as $122.04.


…Investors were “running back to gold, running back to oil, so it seems we are seeing some of the running-back-to-safe haven” behavior, said Phil Flynn, senior market analyst at Alaron Trading.

The value of the dollar is falling because of the weak U.S. economy, which has been dragged down by the struggling financial sector.

CNN