Akhir 27, 1432 H/ April 1, 2011, SPA -- Oil prices reached 2 1/2-year highs on Friday, before falling back as a drop in the U.S. unemployment rate pushed the dollar higher, according to AP. Benchmark crude for May delivery was up 45 cents at $107.17 per barrel in morning trading on the New York Mercantile Exchange. The price rose as high as $107.84 per barrel, shortly after the Labor Department released its monthly jobs report. Oil hasn't been that high since September, 2008. The government said the U.S. economy added 216,000 new jobs last month and the unemployment rate dropped to 8.8 percent, a two-year low. Adding jobs often pushes oil prices higher since it implies that more workers will join the daily commute and increase demand for oil and gasoline. But a surge in the dollar against foreign currencies overrode that on Friday. Oil, which is traded in dollars, tends to fall as the dollar rises and makes crude more expensive for investors holding other currencies. The U.S. Dollar Index, which measures the dollar against other major currencies, climbed almost 0.5 percent in morning trading. «The jobs number looked so good,» analyst and trader Jim Ritterbusch said. «Then everyone looked at the dollar» and wondered how it would affect demand in China and other emerging markets. China is the world's second largest oil consumer behind the U.S. «It's a very nervous market environment right now,» Ritterbusch said. Meanwhile, gas pump prices rose by more than a penny on Friday to a national average of $3.619 per gallon (96 cents a liter), according to AAA, Wright Express and Oil Price Information Service. Gasoline prices are at the highest levels ever for this time of year. They've soared 81.6 cents a gallon since a year ago. In other Nymex Trading, heating oil for April delivery lost less than a penny to $3.1062 per gallon and the gasoline contract for April added less than a penny to $3.1141 per gallon. Natural gas for May delivery lost 3.7 cents to $4.352 per 1,000 cubic feet.
