Crude Oil climbed for a second consecutive day, as the Dollar continued to tumble. This behavior was initiated by the weekend's G20 meeting in which it was agreed that the financial stimulus will only be withdrawn once we see a solid recovery. Also, the U.S. signaled that Interest Rates will be kept low for the foreseeable future. All this led to a U.S. equity rally, and traders dropped the USD and bought-up Crude Oil.
Crude finally closed higher at $79.08, as investors attempted to use the black gold as a hedge against inflation. This comes as the Dollar continues to show much weakness. As today's trading commences, Oil will continue to be the most traded commodity. In addition, Crude prices will continue to be highly correlated with the USD. Therefore, open your positions in Crude whilst trading volume is still low.
