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Crude oil prices shoot up as dollar cools its rally

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Investing.com -

Investing.com - Oil prices rose in U.S. trading on Tuesday after the dollar cooled its recent gains.

A stronger greenback tends to make oil a less attractive commodity in dollar-denominated exchanges, especially in the eyes of investors holding other currencies, thus a weaker dollar makes the commodity an attractive buy.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD92.85 a barrel on Tuesday, up 0.86% and off from a session high of USD93.43 and up from an earlier session low of USD91.61.

Falling unemployment rates in the U.S. sparked demand for the dollar in recent sessions amid building sentiments that the Federal Reserve will wind down stimulus measures sooner than later, which fueled dollar demand, as such policies weaken the greenback to spur recovery.

Meanwhile, China's announcement that industrial production rose 9.9% in February, below expectations for a 10.5% increase also below a 10.3% hike logged during the previous month also made the greenback more attractive.

By Tuesday, however, profit taking sent the dollar falling, which made oil ripe for bottom fishing.

Investors also kept an eye head to U.S. data on retail sales to be released Wednesday and official figures on inventories due out later this week as well.

Hopes for bullish data bolstered oil prices as well.

Elsewhere on the ICE Futures Exchange, Brent oil futures for May delivery were down 0.35% at USD109.31 a barrel, up USD16.46 from its U.S. counterpart.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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