What's Moving the Oil Markets?
•Crude futures traded lower in Europe Tuesday morning, with relatively
low volumes and trades confined to a $1.70/barrel range.
•"Ranges are reasonable, but nothing like yesterday." said one London-based
broker. "The market is quiet at the moment and won't really pick up until
the NYMEX opens."
•Oil prices on Monday continued to be impacted by the US dollar, with the
Dollar Index on ICE rallying to close to a two-week high. "Oil prices
dropped sharply Monday, triggered in large by a stronger dollar, which hit a
10-day high against the euro," energy analyst Edward Meir said in an MF
Global report. "However, the greenback's advance has been uneven, typified
by the late-day fade yesterday on talk of continuing liquidity problems
among US banks, which in turn, helped energy prices finish off their lows in
NYMEX trading."
•The euro/dollar was range-bound Tuesday morning, but traders are keeping a
close eye on movements. "We are watching the dollar and the stock markets.
These have been having an immediate impact on commodity prices markets
recently," another London-based broker said.
Updated: July 8, 2008
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