After three days of falling prices, crude oil climbed above $79 a barrel in European trading this morning as market watchers eagerly wait for the weekly crude inventory report from the Unite States. Many observers feel that oil prices have been based strictly on the value of the US dollar and commodity prices rather than fundamental factors.
“At this time it (the oil market) is more dependent on the direction of the dollar than it is on whatever the DOE, OPEC, China or even Goldman Sachs has to say,” analysts at the Schork Group said in their daily newsletter.
Reuters