Commodity Daily News

Crude Prices Hold above $86 a Barrel

Crude Oil prices held mildly higher Wednesday as traders began to anticipate a US dollar (USD) downturn on speculation of another round of quantitative easing in the US. Data releases out of Europe and the US last week are also driving many investors into and out of safe-haven assets sporadically as market direction became less certain. The recent intervention by the Bank of Japan (BOJ) also upset market forecasters as the status of traditional safe-havens came under scrutiny.

The impact has been a rise in oil values from under $85 a barrel last week to a current price near $86.50 a barrel. An expected jump in dollar values due to this week's risk averse environment has helped many investors ram up their short-taking positions on physical assets, but with the USD's gains not materializing Wednesday, sentiment appears to have the price of crude oil holding steady, with gradual gains priced in. Should Crude Oil sentiment continue to flatten this week, oil prices may reach a decision point which forces a wide swing by week's end; direction is unclear.