Dollar weakness has been cited as a factor, but a trade of $51.80 was made today. Oil futures for April delivery have gained 6.05% in today’s trading, with the current price just shy of the $51.24 mark.
Bloomberg has reported that oil copper and wheat all gained in early trading today. The dollar meanwhile has slumped to a two-month low against the Euro.
The sharp drop in the US dollar, the largest percentage drop since 1985, came after the US Federal Reserve stunned markets by buying long-term US government debt and expanding purchases of mortgage bonds. The move will pump another $1 trillion into the ailing US economy. Â Â
“We have for the time being a return to risk appetite in the oil market and it’s based on the Fed’s announcement yesterday,” analyst Mike Wittner of Societe Generale told Arabianbusiness.com. “That’s having a positive impact on sentiment.”
Reuters is reporting that the traded price has sustained it’s post $50 level for most of the day, and has in fact strengthed even further as the day progresses.
