Oil at highest price in over a week

Associated Press / August 16, 2011

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NEW YORK - Oil jumped to the highest level in more than a week on some positive news about the global economy and a fall in the dollar. As the greenback weakens, investors who hold stronger foreign currencies are able to buy more crude.

Yesterday’s 3 percent rise to more than $87 per barrel all but erased last week’s losses in the oil markets.

For people filling up at the pump, though, crude is still above last year’s levels. That means gasoline prices should be higher than in 2010.

Yesterday, gasoline cost $3.594 per gallon, on average, down less than a penny, according to AAA and others. A gallon is about 84 cents higher than it was last year, though regular is 8 cents cheaper than in July.

Crude rose after Japan’s economy shrank less than expected from April to June.

“Last week, we saw a market that was really driven by fear,’’ PFGBest’s Phil Flynn said. “The data out of Japan shows that the world isn’t falling off the map.’’

China said it expects its consumption to increase 6.5 percent this year.