Thursday, February 4, 2016

Oil jumps 8 percent as dollar tumbles

Oil jumps 8 percent as dollar tumbles after U.S. data

Oil prices jumped 8 percent higher on Wednesday, snapping a two-day rout, after investors took advantage of a weaker U.S. dollar and shrugged off data showing an unexpected large surge in U.S. crude inventories to record highs. The dollar index tumbled to an over seven-week low, making commodities priced in the greenback cheaper for holders of other currencies, amid growing skepticism that the Federal Reserve would be able to hike U.S. interest rates again this year and after data showed the U.S. services industry grew more slowly than expected last month. U.S. crude closed with one its biggest gains in five months, rising $2.40, or 8 percent, to $32.28.
Reuters

No comments: