| The higher price of crude oil was to hedge the weaker dollar |
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ronger
New Member
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| The higher price of crude oil was to hedge the weaker dollar |
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The higher price of crude oil on 30th November made the forex market confused. The new data announced by U.S. Department of Energy should have lowered the price of crude oil, but it was still higher than the closing price on 27th November.
The monthly report on 30th November revised the daily demand in September to more than 50 million barrels per day. In the past one year, the domestic oil daily product really increased by 45 million barrels. Refinery still maintained about 80% of the low operating rate. Facing the weaker demand of industrial countries and limitation spending on the structure, the “Pick Oil” argument difficultly produced the influence.
Owing to the function of cheaper capital, the oil price was higher. The low interest rate made dollar become high-risk capital. To some extent, it was to hedge the weaker dollar. The correlation between the oil price and dollar rose by 30%, to 70%. Like other capital in the period of loose monetary policy, the price seemed to little be influenced by the fundamentals.
[url deleted, poll deleted]
forex,fxdd,mt4
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Fri Dec 04, 2009 3:42 am |
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coaster
Senior Member
Cash: $ 895.55
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And you're concluding all this due to the price action on one day, and one day's report? And, oops, the DOE doesn't announce crude oil data on Mondays, which just happened to be Nov. 30th, but rather they announce it on Wednesdays.
Sheesh, the instant one-day wonders in the internet age. 
Your url isn't allowed and your poll was nonsense, solely in order to flash your website. Both were removed.
Bye Bye Bums
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Fri Dec 04, 2009 4:43 am |
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