Dollar Dips, Crude Surges: Oil Alert

NEW YORK (TheStreet) -- Oil futures surged above $71 on Tuesday as the greenback weakened and oil watchers waited for pronouncements from several of the world's oil ministers.

In the morning, the front-month contract for light, sweet crude was soaring up $3.12 to $71.14 on the New York Mercantile Exchange. On Friday, the day before the Labor Day holiday weekend, the contract for October delivery rose by 6 cents to settle at $68.02.

Crude's upward move came on the same day that the Euro itself reached a new yearly high against the dollar. The buck is also down against a whole host of currencies today, with the dollar index plummeting to a low for 2009.

The Organization of the Petroleum Exporting Countries is meeting Wednesday to go over its global oil policy. Reports are circulating Monday that Ali al-Naimi, Saudi Arabia's oil minister, said that the oil market is in good condition and well supplied, lending credence that a production cut from the group will not be coming this week.

Major oil stocks were climbing higher in the morning as well. Shares of Exxon Mobil(XOM Quote), ConocoPhillips(COP Quote) and Chevron(CVX Quote) were adding 2.5%, 2.8% and 2.4%, respectively, after the opening bell.

Morning trading also found Marathon Oil(MRO Quote) gaining another 3.2%, while Hess(HES Quote) was doing slightly better by putting on 3.6%.

Among the servicers, Schlumberger(SLB Quote) was tacking on another $2.41, or 4.3%, at $58.28.

BJ Services(BJS Quote) dipped slightly on Friday, was bidding at $16.77 today after adding 28 cents.

-- Written by Sung Moss in New York

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