SINGAPORE – Oil prices jumped above $73 a barrel Tuesday in Asia as a weakening U.S. dollar and attacks on oil installations in Nigeria helped push prices to eight-month highs.
Benchmark crude for August delivery was up $1.05 to $72.54 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange after trading as high as $73.38. On Monday, it gained $2.33 to settle at $71.49.
Oil has surged from below $35 in March in part on investor concern that massive U.S. fiscal stimulus spending will eventually spark high inflation. Investors often buy commodities such as crude as a hedge against a weakening dollar and inflation.