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Oil trading tips, watch the US Dollar Index for price comparison
Published on December 3, 2009 by oilprices · No CommentsOil trading tips, crude prices fall as US oil supply jumped yesterday, but oil is now trading slightly higher on Thursday, do current oil prices have any relation to the US Dollar Index and can a comparison be seen?
Oil analysts were expecting crude stock to decrease 1.3 million barrels, were surprised, when the American Petroleum Institute reported in increase of 2.9 million barrels. Many oil trading analysts believe that that because trading for the past few weeks were in the range between $65 and $80 a barrel, the market found its trading range and they expect a floor to the market was also found.
Currently the US Dollar Index is down 0.19 to $74.44. So what is the Dollar Index?
The US Dollar Index (USDX) is an index or measure of the value of the US dollar relative to a basket of foreign currencies. It is a weighted geometric mean of the dollar’s value compared only with the following currencies: Euro (EUR), 57.6% weight – Japanese yen (JPY), 13.6% weight – Pound sterling (GBP), 11.9% weight – Canadian dollar (CAD), 9.1% weight – Swedish krona (SEK), 4.2% weight – Swiss franc (CHF) 3.6% weight.
Many currency analysts believe that the US dollar will continue to fall in value as the US economy continues to underperform in many key areas. However, Light and Brent Crude oil prices are trading at near $80 dollars per barrel year highs, even as global news suggests that the prices should be heading much lower.
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Tags: brent, crude, futures, light, oil, oil trading, price, trade, trading