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Crude Oil: Rose on the back of a weak US dollar

Yesterday the US dollar fell after disappointing US durable goods orders for February. A weaker dollar makes commodities denominated in US dollars cheaper for holders of other currencies, typically boosting demand for such raw materials.

The Saudi oil minister, Ali al-Naimi, revealed this Sunday, March 22, according to Bloomberg, the country is producing at recorded high of almost 10 million barrels per day and that Riyadh is optimistic about the evolution of the oil market.

Yesterday the U.S Energy Information Administration (EIA) released its latest survey. The report was expected to show a decrease in crude oil stocks with estimates at 5.000 million barrels but the actual was worse than expected rising to 8.170 million barrels.

Crude oil price rose 3.71% on high volume, breaking above the 50-day moving average and close near the high of the day. The commodity is in an unconfirmed recovery phase and the stochastic is showing bullish momentum.

Expecting upward move to a daily key level at 51.68 on a break above previous day high at 49.42 (scenario 1).

LCrude is a CFD written over Light Crude futures.