Commodity Daily News

Oil Rises to a 7-week High

Oil rose to a 7-week high of $73.80, and finished trading at about $73 a barrel. This was largely due to the increased global optimism stemming from the current global economic recovery. Investors inferred from this that demand for Crude Oil will rise significantly in the coming months. One of the main factors helping boost the price of Crude yesterday was the weak Dollar, which encouraged traders to buy-up the black gold as a hedge against inflation.

It seems that as long as the Dollar continues to weaken and the forecast for an acceleration of the global economic recovery continues to increase, then the price of Crude will continue to stay strong. Additionally, if this in fact does occur, then investors will be further encouraged to buy-up high yielding commodities such as Crude Oil.