Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Re: Oil keeps los after EIA s oil stocks drop/Lee

Hi Lee,

It appears to me that the strong dollar was the main culprit responsible for crude's clubbing today. That's the same take as 'analysts' quoted in this news clip from this afternoon as well:

Oil's steep drop tied to rising dollar ( CL1N EURUSD ) (by Dawn Lim)

NEW YORK (MarketWatch)-- The sharp selloff in oil prices Wednesday was mostly due to the rise in the U.S. dollar, according to energy analysts. "With the euro so weak and dollar so strong, there is a sense that the tremendous strength of the dollar will affect oil," said Tariq Zahir, managing member of Tyche Capital Advisors. "We're seeing a lot of risk-off trade," said Zahir, referring to a broad exit from investments known as risk assets, or the commodities, stocks and currencies that had rallied sharply between 2009 and 2011 along with a rebound in the global economy. July crude (CL1N) closed at $94.81 a barrel, down $4.56, or 4.6%, as the dollar [S: EURUSD] rose more than 1% against the euro on the back of fears about a Greek debt default. Crude is priced in U.S. dollars and is worth less when the dollar rises. For oil, "the sentiment is bearish once you break $95" a barrel, Zahir said.

Messages In This Thread

Re: Oil keeps los after EIA s oil stocks drop/Lee