US Light oil prices are back on the march upwards as a weaker US dollar and rising world stock markets added three percent on trading on Monday bringing prices back over the $82 mark.
On Tuesday in Asia, New York’s main contract, Light crude oil futures for delivery in May continued to climb and is currently around $82.60 a barrel on the NYMEX.
“The dollar is down, that is causing commodities in general to rise,” said independent analyst Ellis Eckland.
“Increasing economic optimism in the run-up to US employment data, to be released on Friday, boosts oil prices at the start of the week,” said Commerzbank analyst Carsten Fritsch in a note to clients.
The US dollar has been in decline against the euro since Friday, when European leaders reached an agreement on a rescue package for Greece to provide the troubled country and Europe’s single currency with immediate relief and improve the outlook for Europe’s debt crisis.
The euro extended gains, pushing the US dollar further down to make dollar denominated commodities such as crude oil futures cheaper to buy and trade for holders of other currencies.