- Crude oil prices add to three-year highs following a further decline in the U.S. dollar and another drop in U.S. crude inventories; Brent crude +0.6% at $70.99/bbl after reaching $71.20, U.S. WTI +0.7% at $66.10/bbl.
- U.S. crude inventories fell for a record 10th straight week to the lowest since February 2015, according to official figures released yesterday.
- But "almost every commodity class is being driven up by this extended dollar fall," says Commerzbank (DE:CBKG) analyst Carsten Fritsch, with the dollar index now at its lowest level since December 2014.
- "The U.S. Treasury secretary has re-introduced the concept of currency wars in the trading psychology," says Olivier Jakob at oil consultancy Petromatrix, after Sec. Mnuchin's comments yesterday that a weaker dollar was “good for trade.”
- The remarks have added to the already bullish sentiment in raw materials that has come on the back of global economic growth, sending oil, gold and metals to multiyear highs and even lifted agricultural commodities, which had struggled under the weight of bumper crops in recent years.
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- Now read: WASDE Details Big Supplies, But Demand And The Dollar Provide Support As We Head Into 2018
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