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Crude Oil on Track to Weekly Gains & Amazing Monthly Performance

January 26, 2018 at 18:42 by Vladimir Vyun

West Texas Intermediate crude oil gained today. Brent grade of crude rose as well, though its gains were much smaller. Both WTI and Brent were heading to weekly gains and were on track to the best January performance in 12 years.

The reason for today’s rally was the weakness of the US dollar. The greenback got a hit early this week from comments of US Treasury Secretary Steven Mnuchin, who suggested that a weak currency should be beneficial to the US economy. Dollar-denominated commodities usually gain as the US currency weakens.

Markets largely ignored supply data from Baker Hughes, at least for now. The report showed that US oil rig count increased by 12 this week. At 759, the number of oil rigs stands at the highest level since September.

March contract for WTI crude oil jumped 0.96% to $66.14 per barrel as of 18:34 GMT on NYMEX today. Contract for Brent oil gained 0.37% to $70.68 per barrel on ICE. Both contracts have touched the highest level since 2014 earlier today.

If you have any questions and comments on the commodities today, use the form below to reply.

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