Crude Oil gains on weak dollar and increased aggregate financing of China.
After consecutive negative results dollar index, a gauge of dollar against basket of six major currencies, fell to 79.95 lowest since 30thDec as industrial production dropped to -0.3%, lowest in last eight months, and consumer confidence remained unchanged at 81.2. Weak USD strengthens commodity prices at international market. On the other side, according to People Bank of China nation aggregate financing reached near to $425 billion in last month. It suggests strengthening growth at world second largest economy that can surge demand for crude oil.
Snow storm that moved from South to the Northeast U.S. damaged power lines to thousands of homes and businesses, snapping traffic and cancelling more than 14,000 flights. The commodity is also used as heating oil at these regions.
Today WTI contract for March delivery opened high at $100.32 gained 0.41% to $100.70 at 0915 GMT. Crude oil prices gained 3.4% in this month. Overall demand for heating fuels has remained high during this winter. GSCI Index for Energy Commodities has gained 5.67% in one month and 0.47% in last week.
We are expecting that crude oil prices will get highly affected by manufacturing data releases of Thursday.