Fundamental Oil

Crude prices rose slightly today as on one hand the black gold opponent; the dollar, lost some momentum throughout the currencies market today on technical and volatile movements, knowing that the dollar index, which tracks the strength of the green Benjamin in front of a basket of currencies, is plummeting on the daily scale to trade at 77.58 recording a high of 77.85 and a low of 77.53.

Accordingly, since oil is a dollar denominated asset, it seems therefore cheaper for international traders to buy, having the black gold appeal as an alternative investment boosted on the current weakening of the Federal currency.

On the other hand, the demand on oil, natural gas and heating oil rose throughout this past period mainly within the top oil consumer country and other major economies due to a colder winter, knowing that around 50% of the United States is covered with snow.In fact, 13 to 30 inches of snow covering Virginia, Maryland and Washington, D.C according to the National Weather Service, which pushed actually the Washington DC federal government to close along with the closing of schools and various companies and business around the country.

As a result, optimism is detected throughout the black gold market oil seems cheaper to international traders as it is as we know a dollar-priced commodity, having crude prices accordingly opening at $77.92 a barrel recording a high of $78.12 per barrel and a low of $77.76 per barrel along with a considerable $0.68 gain witnessed within the oil contract, plus the S&P GSCI rose actually by 6.72 points to 522.57.
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