What's Moving the Oil Markets?
•Crude futures markets were firmer Friday, feeding off a late rally on
Thursday with the influence of the US dollar exerting itself. "It is purely
about the dollar, it is just that and nothing else," said a London-based
trader. "The shorts might want to cover ahead of the long weekend in the UK
and if the dollar weakens some more, we could finish up on the day."
•The US dollar weakened against both the euro and sterling Friday, negating
some of the refound confidence in the dollar from Thursday. Perceptions that
the Fed may pause after five consecutive rate cuts had sent the US dollar
surging 88 points during Thursday trading to a six-week high of 73.393,
which kept downward pressure on petroleum, base and precious metals, softs
and grains.
•On the charts, NYMEX WTI bounced off $110/b support levels halting three
days of significant downward movement, breaking back above $113/b by
mid-morning London time. "On a technical level, [NYMEX] WTI held above
support levels on Thursday night and recovered before the close," said a
London-based broker.
Updated: May 2, 2008
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