Categorized | ForexYard

Crude Oil Prices Hold near $98

Posted on 18 May 2011 by ForexYard

Oil prices fell below $98 a barrel yesterday morning, surprisingly after the euro took off against its primary rival, the US dollar. US oil stockpiles rose over 3 million barrels for the second week in a row last week, and forecasts for today’s oil inventories report is for another increase of approximately 1.4 million barrels. The sudden plummeting value of the dollar had many analysts assuming that oil would find support in this morning’s trading, and so far we’ve seen some stability after yesterday’s plunge.

Whether oil traders decide to lift oil prices back from this recent plunge is yet to be determined, especially considering the strangeness of the inverse relationship to the USD yesterday. The greenback’s decline may have a delayed effect today and oil traders may see the price bouncing back if that is the case.

This analysis is republished with permission from ForexYard. Their daily analysis can also be found at Daily Commodity News.

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