Crude Oil Price Update-Futures Increase on Strong Global Economy Outlook, Weak US Dollar

Crude oil futures advanced as speculation increased over a strong global economy paving the way for an increased demand of oil, coupled with a weak US Dollar increasing the attractiveness of other commodities denominated in the currency. WTI crude futures rose by 0.47 percent to USD $ 100.70 a barrel. Brent crude futures rose by 0.27 percent to USD $ 115.36 a barrel.

At the end of a two-day summit in France, Group of Eight leaders declared that the global economy was showing signs of becoming more self-sustained. Even though the US economy grew by a slower-than-expected rate of 1.8 percent in the first quarter of this year, there is speculation that the global economy will grow at a sufficient pace to justify an increased demand of oil.

Furthermore, the US Dollar remains depreciated against the Euro. A depreciated Dollar increases the attractiveness of other commodities. With the Dollar appearing to remain depreciated for quite some time owing to the Fed’s lax monetary policy, the demand of oil is expected to be on the higher side in the coming days.