Oil rises above $99, gas pump prices down again

May 24, 2011 - 10:00 AM

NEW YORK (AP) — Oil is climbing after the dollar weakened and major investment banks predicted that crude prices will rise later this year.

Benchmark West Texas Intermediate for July delivery added $1.74 at $99.44 per barrel Tuesday morning on the New York Mercantile Exchange. In London, Brent crude rose $2.07 to $112.17 on the ICE Futures exchange.

The dollar fell against other currencies. Oil is priced in dollars and its price tends to increase when the dollar falls and makes crude cheaper for investors holding foreign money.

Oil also got a boost from Goldman Sachs and J.P. Morgan outlooks that said prices would almost certainly turn around later this year after a 15 percent drop this month.

Gasoline prices fell for the 12th straight day to a national average of $3.282 per gallon.