Commodity Daily News

Price for a Barrel of Oil Supported by Weakened US Dollar

Oil prices ended yesterday trading slightly higher on the day after statements by the US Federal Reserve affirmed the continuation of record low interest rates. As investors bailed out of their long positions with the USD, oil prices found support, pushing the commodity back towards $113 a barrel with a closing price of $112.76.

Combative remarks have been tossed about lately by politicians and business leaders searching for blame on the recent spike in energy costs. Gas prices in the United States are approaching nominal highs, causing stirs and outrage by US consumers. The high transportation costs for exporting nations are also feeling the pinch as global industry appears to have begun faltering. The reasons for industry short falls may be tied with high oil prices, but could also be due to an atmosphere of pessimism towards growth in the near-term, analysts have said.

As for today, crude oil traders may want to consider that commodities, which are linked to the value of the US dollar, are likely going to receive a boost in the immediate future due to yesterday's monetary policy statements. Hawkish statements about economic growth may suffice to hold prices stable between $112 and $115, but many speculators are beginning to anticipate another bull run in commodity prices and traders would be wise to watch for the bounce after the price corrects from yesterday's movement.