Commodity Daily News

Oil Prices Gaining from Resurgent EUR

The price of Crude Oil appears to have rebounded over the past few trading days as the US dollar weakens against the euro. With the possibilities for a bailout of the Irish economy in the days ahead, the EUR appears to be climbing against its principal rival - the USD - and this has driven commodity prices higher as a result.

With little news expected from the US and Europe in today's trading, most speculators will be watching for any announcements as to the situation in Ireland. If the debt contagion appears to be spreading to Portugal and Spain we could see a correction to the EUR's recent gains. However, if Ireland takes the bailout and the debt seems momentarily contained, the 16-nation single currency should continue rising, pushing commodity prices higher in the short term.