Crude Oil Makes a Bullish Comeback on the Weaker Dollar!
Crude oil futures managed to make a bullish comeback this morning on the much weaker dollar. The energy has climbed this morning by 45 cents to $88.95. This is after it made very heavy declines during yesterday’s trading session. It is important to take into account that crude slumped yesterday in spite of the weaker dollar. This was because there were other factors at play such as the news of weak manufacturing from the U.S. and Eurozone economies.
The bullish sentiment this morning is largely owed to the news that European finance ministers have agreed on additional ways of helping to rescue the Eurozone. For example, Germany is playing a bigger part than previously with regards to rescuing the Eurozone. What’s more, there is a proposal of a Greek bond buy-back plan. The increased possibilities for boosting the euro-region is really positive and traders understand this.
Crude oil futures have been much higher since the commencement of Wednesday morning’s trading session. Traders understand that it is worth buying into the commodity, as it has been so undervalued recently. Therefore, what we are seeing right now is a natural bullish correction for one of the most traded commodities. The behavior we are witnessing currently is not much of a surprise, but this does not mean traders shouldn’t take advantage of the current trend.
One of the most important factors that is pushing crude oil higher this Wednesday morning is the much weaker dollar. The bearish USD is finally taking its toll, and doing the natural thing by pushing commodities such as crude oil higher. Therefore, both the optimism from the Eurozone and the weak greenback could continue putting upward pressure on crude oil today. As a result, you will need to really stay ahead of today’s market developments.