Oil Rises for Second Day as Dollar Weakens, Equities Increase
Traders Blog | Friday 28 August 2009
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Crude oil gained for a second day as the dollar lost value against the euro, increasing commodities’ appeal for investors, and advancing equities boosted confidence that the global economy will rebound and revive fuel demand. Oil rose as much as 1.3 percent in New York as the euro strengthened against the dollar, making oil more attractive as a currency hedge. The MSCI World Index of stocks headed for a seventh weekly increase.
“A breakout to the upside in the euro and the stock market could equal a breakout to new territory in oil,” said Jim Ritterbusch, president of Ritterbusch & Associates, a Galena, Illinois, consultant. “We’re at a critical juncture”…..Complete Story
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