Commodity Daily News

Oil Prices Rise as a Result of Weakened Dollar

Since the opening of the early trading sessions this week, traders have seen the price of Crude Oil continue its rise over the weekend and now float near the $104 mark, up from last week's low of $91. No doubt the U.S. financial crisis has made an impact on the price of Crude Oil. A weakened USD makes dollar-priced Oil and other commodities a more attractive investment for buyers using stronger currencies. Traders also focus on what's happening in the market. Events such as hurricanes and the militant uprising in Nigeria's oil-rich region all have an impact on speculation about the supply, and hence the price, of Crude Oil.

The U.S. strategy for bailing out the major investment banks clearly had little impact on weary investors, who have recently been taking their money out of the shaky stock markets and investing in safe-haven commodities instead, driving their prices higher. As for today, the price of Crude Oil appears to have settled at $103.93, but volatility is just on the horizon as this week's economic indicators will once again create intense fluctuations in the market. Traders should follow the movement of the USD this week as it tends to have an inverse relationship with the price of Light Sweet Crude.