Thursday, December 25, 2008

Bullish on crude oil price.

Picture above shows one year charts for United States Oil fund (USO), PowerShares Bullish US dollar index (UUP) and SPDR Trust (SPY). You can see there is a inverse correlation between the value of US dollar and crude oil prices. Slide from record crude prices $ 140 triggered US dollar rebound. In last days EURO and other currencies are re-gaining back ground against US dollar but crude oil is heading still down.
Another indication of possible turnaround are equities. Global markets found their short term bottom on November. And crude oil price usually follow stock markets peak or bottom with some delays.


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