Wednesday, 3 Mar 2010

Crude Prices Near $81 a Barrel

Crude Oil futures topped $81 barrel Wednesday for the first time since mid-January despite a surprisingly high increase in Crude Oil stockpiles. Crude Oil for April delivery rose $1.04, or 1.3%, to $80.72 a barrel. Prices had briefly dipped below $80 after the release of the U.S inventories report but then accelerated higher, rising as far as $81.31 a barrel. Prices were bolstered by a declining U.S Dollar and a slowing down in U.S job losses.

The EUR rose to its highest level versus the Dollar in two weeks as Greece announced spending cuts and tax increases, easing budgetary concerns. The Dollar fell against all but one of its most traded counterparts as commodities rose, spurring demand for higher yielding currencies tied to growth. The Pound rose against 13 of the 16 most traded currencies after the Services PMI jumped to 58.4 from 54.5 in January, allaying concerns of an economic slowdown.

The EU gained 0.7% to $1.3716, from $1.3615 yesterday. The EUR traded at 121.23 Yen, from 120.96 Yen. The Dollar fell as much as 0.5% to 88.39 Yen, from 88.85.