Crude oil has been a conundrum of late, as seemingly high inventories are ignored by the market in lieu of geopolitical concerns and perhaps simply a feeling of inevitability that crude will go higher. What has become clearer is crude oil’s relationship with the U.S. dollar. It has shown near perfect correlation to the dollar, similar to gold. Analyst Thomas Hartmann said the greatest downside risk didn’t come from expanding inventories but to a dollar recovery. He was on the money with his $100 support level as crude briefly dipped below the century mark but never closed below it. But the market does pay attention to inventory levels when they drop, as lower than expected inventories cause crude to spike to new all time high above $110 last week. Tim Evans also saw bearish fundamentals and crude being propped up by the weak dollar. A situation he referred to as dangerous.
Featured Topics
-
Financials
Banks urge EU lawmakers to back derivatives competition
Banks in the European Union are urging lawmakers to drop their opposition to plans for boosting competition in the clearing of derivatives trades.
-
ETFs
ProShares launches ETF that targets highly rated corporate bonds
The ETF invests in covered bonds, a type of collateralized corporate debt typically issued by non-U.S. financial institutions.
-
Forex
Euro falls to 22-month low as German business confidence slides
The euro traded close to the weakest level since July 2010 versus the dollar as German business confidence slid and manufacturing shrank, stoking concern fallout from the debt crisis is spreading.
-
Options
Crude options volatility rises as futures near $90 a barrel
Crude-oil options volatility rose for the first time in three days as underlying futures slipped below $90 a barrel.
-
Sponsored by
-
Sponsored by
-
Sponsored by
-
Sponsored by
