Crude oil hit its highest level of 2016 on Wednesday, driven by a falling dollar and evidence of declining U.S. supply, putting the price on course for its strongest monthly performance since last April.
The market has that easy money feeling again, a phenomenon that was thought to be fading into the rear view mirror on the heels of the U.S. economy. The inaction of the fed last month coupled with the soft jobs data from Friday have market participants acting as if zero interest rates are here for good.
Crude oil prices declined on Monday, holding near $55 a barrel after Saudi Arabia indicated it was now pumping near a record high of 10 million barrels per day, adding to concerns of global oversupply.
Brent and West Texas Intermediate crudes are poised for the lowest close in more than five years after Saudi Arabia offered its oil customers in Asia the biggest discount on record, signaling it’s defending market share.