Commodity Daily News

Crude Price Goes Up as USD Comes Down

As last week's trading session came to an end, the price of Crude Oil appeared to make a rather abnormal upward turn. Starting near $50.50, the price rose just above $53.00 during the last remaining trading hours on Friday. As today's trading session began, the price of oil appeared to remain in place above the $53 mark. What may have caused such a movement?

Glancing over the fundamentals doesn't appear to provide a clear-cut indication for this upward movement. However, there does appear to be one trend which may have pushed the price of oil higher: the USD's depreciation. Crude Oil is sold in US Dollars, which means the two are negatively correlated. As the USD depreciated from numerous factors, such as the swine flu outbreak and increase in risk appetite, the price of Crude Oil likewise moved positive. However, the price has yet to breach any real significant barriers. If Crude Oil's price moves beyond the $54 mark in this week's trading, investors may look to buy this commodity as it discovers its new price level. Also, if the USD does go weaker in the days ahead, traders should look to buy Crude Oil as a relatively safe investment.