Crude oil turned higher, increasing to $90 a barrel, on Thursday after the world’s central banks moved to increase the dollar liquidity.
Oil prices rose yesterday after the ECB said it will coordinate with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank. Oil prices also rose when German and French leaders said Greece would remain in the euro zone.
“The market is highly reactive to the ebb and flow of headlines about the euro-zone debt crisis,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “This should strengthen the euro, reduce the need for the dollar as a safe haven, and put us in commodity rally mode again.”
Crude for October delivery has risen 16 cents, or 0.18%, to reach $89.07 per barrel on the New York Mercantile Exchange.
Brent oil for October settlement climbed $2.69, or 2.4 percent, to $115.09 on the London-based ICE Futures Europe exchange. The contract expired yesterday.
The ICE Dollar Index, which tracks the greenback against a basket of currencies, fell 0.6% to $76.404. A weakened dollar increases the prices of crude.
That’s all for now,