In the energy market on Tuesday, crude for August delivery surged, closing at $69.24/barrel, up $1.74. July reformulated gasoline rose 3.35 cents, to $1.8932/gallon.
“Inventories expectations and the weak dollar are helping crude,” said Phil Flynn of Alaron Trading. Trading was “choppy with all the news that awaits us such as inventories and the Fed meeting.”

The Energy Information Administration will release its stockpile data this morning, with analysts expecting that U.S. commercial crude stocks will have dropped 1.2 million barrels, according Platts.

But fundamentalists are decrying the lock step inverse movement of crude and the dollar.

“The fundamentals don’t seem to matter,” said Bill O’Grady, the chief markets strategist at St. Louis-based Confluence Investment Management. “I can tell you what the oil market is going to do by just looking at the currency market.”

Source: Crude Rallies

Last 5 posts by Doug Casey

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