Commodity Daily News

Oil Prices Float in Expectation of Market Direction

Has the upswing in the price of oil met its peak? Those trading on Thursday saw a continuation of the previous day's rally in the price of Crude Oil. Due primarily to a weakened dollar, Oil jumped from $91 Monday, to $98 Thursday, before showing any signs of reversing. Now the market is beginning to see this price float around the $97 mark while traders assess the direction of the USD before the weekend. As a result of yesterday's announcements that various central banks would begin to pump billions of dollars into the market, we may see a reversal to the price of Crude Oil, but it is still too early to tell if this action will have the desired effect.

So long as the direction of the major currencies remains uncertain, commodities like Oil will be bought up by traders looking to stash their money in a safe place. This will continue to drive the price of oil higher and higher. Traders would be wise to keep an eye on the direction of the USD today. If the dollar rallies, we may see a drop in the price of Oil. If not, look for Oil to continue climbing.