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| Version 3 | Version 4 |
|---|---|
| Oil hits $120 a barrel milestone | Oil hits $120 a barrel milestone |
| (about 1 hour later) | |
| The price of a barrel of oil has risen above $120 for the first time, driven by concerns about the situations in Nigeria and northern Iraq. | The price of a barrel of oil has risen above $120 for the first time, driven by concerns about the situations in Nigeria and northern Iraq. |
| US light sweet crude rose to a record of $120.36 a barrel in morning trading in New York before falling back to a record close of $119.97 - up $3.65. | |
| Another factor pushing up the oil price has been the US dollar's weakness as investors opt to back commodities. | Another factor pushing up the oil price has been the US dollar's weakness as investors opt to back commodities. |
| Since the beginning of the year, oil has hit a string of new highs. | Since the beginning of the year, oil has hit a string of new highs. |
| This has led to gas and petrol prices reaching unprecedented levels, in many parts of the world. | |
| 'Lingering hotspot' | 'Lingering hotspot' |
| In Northern Iraq, Turkish forces have renewed cross-border raids against Kurdish insurgents. | In Northern Iraq, Turkish forces have renewed cross-border raids against Kurdish insurgents. |
| Meanwhile in Nigeria, rebels have attacked oil wells and pipelines which feed an export terminal. | Meanwhile in Nigeria, rebels have attacked oil wells and pipelines which feed an export terminal. |
| "Nigeria is the lingering hotspot the markets will be focusing on," said MF Global analyst Ed Meir. | "Nigeria is the lingering hotspot the markets will be focusing on," said MF Global analyst Ed Meir. |
| He added that while some production in the oil-rich African nation, there were "reports of fresh violence, as another pipeline explosion has shut in more oil production". | He added that while some production in the oil-rich African nation, there were "reports of fresh violence, as another pipeline explosion has shut in more oil production". |
| The relationship between currency markets and commodity prices is a relatively new phenomenon, Damian Cox from John Hall Associates told the BBC last week. | The relationship between currency markets and commodity prices is a relatively new phenomenon, Damian Cox from John Hall Associates told the BBC last week. |
| "Since about August, commodities appear to have been responding to movements in the currency markets," he said. | "Since about August, commodities appear to have been responding to movements in the currency markets," he said. |
| "As the dollar has weakened, some people have moved into commodities." | "As the dollar has weakened, some people have moved into commodities." |
| In the past, a weakening US dollar would have been seen as a sign of weakness in the US economy, which would have meant that demand for oil was likely to fall and so the oil price would fall. | In the past, a weakening US dollar would have been seen as a sign of weakness in the US economy, which would have meant that demand for oil was likely to fall and so the oil price would fall. |
| But now, some traders see commodities such as oil as a hedge against declining currencies. | But now, some traders see commodities such as oil as a hedge against declining currencies. |
| So, if they were worried about the dollar falling in value, they might sell dollars and buy oil, for example. | So, if they were worried about the dollar falling in value, they might sell dollars and buy oil, for example. |