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NYMEX crude oil price at seven week high on US dollar, optimism
Published on October 13, 2009 by oilprices · 1 CommentNYMEX crude oil price ended at a seven week high on Monday, rising for a third day in a row as a weak dollar attracted buyers. Cooler temperatures and optimism about an economic recovery added some support.
On the NYMEX, November crude CLX9 closed up $1.50, or 2.09 percent, at $73.27 a barrel, the highest settlement since Aug. 24′s $74.37. It traded from $72.05 to $73.84, the highest since the intraday high of $75 on Aug. 25, which was the year’s high and highest since the intraday prices hit $75.69 on Oct. 21, 2008.
The US dollar was mostly lower on Monday as investors shunned it for higher yielding currencies and assets, on the belief that corporate quarterly earnings, including from some top US banks, will top forecasts.
“Obviously, bearish fundamentals are being overshadowed for the time being by increased interest in the oil as an asset class mainly in conjunction with the weaker dollar,” said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois. “Of course, technical factors are also at play as fresh multiweek highs tend to encourage additional capital entry into the long side,” he added.
“Get the earmuffs out. Oil bears get frosted as cold temperatures give the energy complex a Columbus Day boost,” said Phil Flynn, analyst at PFGBest Research in Chicago.
Oil trading sources also pointed to North Korea’s reported missile tests and the ongoing dispute with Iran as adding to the bullish flavor of trading on Monday.
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A jump up in oil prices, I’m getting out at $75, dollar is still heading down, how much lower is anyones guess…