The futures for crude oil recorded a fairly moderate gain this week albeit the weakening dollar led to a burst of optimism among many buyers seeing a better economic outlook for the coming weeks to come.
The greenback was in a stressful situation as shown by the latest report revealing a sharp decrease in confidence in a substantial number of consumers. The University of Michigan’s consumer confidence index for this month abruptly fell to 71.8 points, its lowest level in the last two years from a previous level of 77.6 last month. Economists and experts speculate a near reading of 78.0 which was far from actual figures.
In another report on the US industrial sector, production came in much stronger than previously expected. It expanded by 0.7 % month-on-month last February which was way ahead of the speculated 0.3 % increase.
The present value of crude oil soared up to an intra-day high of $93.84 per barrel while investors chewed over the unmarked data and as the dollar index measured the US dollar currency against the pack of 6 others, it reluctantly fell to 82.235 from its previous 82.605 last week.
A much weaker dollar results for dollar priced commodities and stocks to become cheaper for those holding several other currencies on hand. Crude oil price for April delivery levelled at 42 cents at $93.45 per barrel on the New York Mercantile Exchange which for three weeks are on a high streak for closing high. It closed with a weekly average gain of 1.6 %. The ICE futures exchange in the UK, London Brent for the May delivery pressed on 86 cents at $109.82 per barrel.
Among the precious metals, gold rallied a modest advance that was assisted by the weaker dollar and registered a weekly average increase of approximately 1 %. The precious gold commodity for April delivery went up $1.90 that happily settled at $1,592.6 an ounce on the Comex sector of the New York Mercantile Exchange.