Afternoon Price Check, July 29: Weak Dollar Pushes Oil Prices Higher
Oil prices climbed as the dollar weakened against other currencies. (image: ft.com)
The dollar weakened considerably on Thursday, helping oil prices rise for the first time in a week. Because crude oil and heating oil futures are priced in dollars, a weak dollar makes them cheaper (and more attractive) for traders who hold other currencies, which in turn supports higher prices. The dollar fell against most other currencies, and hit a 12-week low against the euro. Action in the currency markets drove up oil prices even as stock markets remained flat and inventories remain high.
Today’s closing prices on the NYMEX
Crude oil (September 2010 contract): Up 1.8 percent, $78.37 per barrel.
Heating oil (August 2010 contract): Up 2.2 percent.
