• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 1 hour U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 20 mins Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 13 mins Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 8 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 5 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 31 mins UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 6 hours Iranian Sanctions - What Are The Facts?
  • 4 hours China Thirsty for Canadian Crude
  • 20 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 20 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
  • 4 hours Who's Ready For The Next Contest?
  • 7 hours EU to Splash Billions on Battery Factories
Alt Text

Move Aside Lithium – Vanadium Is The New Super-Metal

Lithium took investors across the…

Alt Text

Barclays: $70 More Likely Than $100

While there have been plenty…

Alt Text

Why Crypto Miners Are Paying Attention To The Permian

The Permian is literally burning…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Is It Time To Take Profits?

Is It Time To Take Profits?

Like many of the higher-risk assets, energy-related markets posted a top at the end of April and started a decline the first few days in May. Without any major events last week, the markets were largely influenced by the strength and direction of the U.S. Dollar.

Commodities such as crude oil react to the movement of the U.S. Dollar because they are dollar-denominated. So when the dollar strengthens, the commodity becomes more expensive to foreign investors. Because of this, a rising dollar often leads to lower demand, which puts downside pressure on the commodity.

On May 3, the U.S. Dollar Index, which measures the U.S. Dollar’s value versus six currencies, fell to its lowest in over 15 months, led by the Japanese Yen’s surge, partly on skepticism about whether Japan policy-makers would intervene to slow its rise.

Thin trading conditions due to a Japanese holiday and position-squaring ahead of Friday’s U.S. Non-Farm Payrolls report helped trigger a short-covering rally by the dollar, helping to put pressure on crude oil prices.

The selling in the crude oil market could’ve been worse if not for speculative buyers taking advantage of wildfires in Canada that have forced several operations in the region to close and escalating Libyan violence that raised worries about immediate oil supplies.

The short-covering was so fierce that Brent oil’s premium over West Texas Intermediate briefly disappeared when the U.S. market…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News