Oil Rises Above $72 as Dollar Weakens to Lowest Level This Year

Crude oil rose above $72 a barrel as the dollar dropped to the lowest level against the euro this year before OPEC’s scheduled announcement today that its members will maintain output targets. Oil added to yesterday’s gain of 4.5 percent in New York as the falling U.S. currency spurred investors’ demand for dollar priced assets to hedge against inflation. The Organization of Petroleum Exporting Countries should maintain existing output quotas and improve compliance when it meets, the group’s production-monitoring committee recommended late yesterday. “The oil market is going to remain focused on the dollar and what other commodities do,” said Phil Flynn, vice president of research at PFG Best, a Chicago based brokerage. “We are all expecting OPEC to celebrate where prices are and pay lip service to better compliance in the future”.....Read the entire article