Approach of Hurricane Ike gave boost to oil to rebound from its five- month low whereas gain in gold and wheat

As the approach of Hurricane Ike postponed the re-establishment of output in the Gulf of Mexico and the dollar’s improvement slowed down crude oil jumped back from a five-month low in New York while gold and wheat advanced.

Since producers evacuated workers from platforms in the gulf or kept back on shore staff drawn from the path of Hurricane Gustav last month oil gained for the first time in seven sessions. Subsequent to US government’s seizure of Fannie Mae and Freddie Mac prices increased also, as rally in the dollar slowed.

According to Stephen Schork, president of Schork Group Inc; there is an inextricable connection between the dollar and crude oil as well as commodities usually.

Since demand amplified and strikes and droughts restricted production commodities with oil and copper arrived at records this year. Investors influenced to buy platinum and gold due to falling U.S. dollar also as hedges against inflation.

There was first decline in eight sessions in U.S. currency that lost 0.6 percent in an index against six other major currencies in Tokyo. Copper for December delivery added 5.4 cents, or 1.8 percent, to $3.1530 a pound. As inventories observed by the London Metal Exchange went up to their highest since Jan. 8, the metal fell 8.5 percent last week.