The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Oil spiked to its highest level in five months as a drop in the US dollar and conflicts from Iran to Libya helped make the barrel look like an increasingly strong bet for investors.
Crude futures rallied as much as 2.1 percent in New York on Monday. The dollar fell, improving the lure of commodities priced in the greenback. Meanwhile, fighter jets bombed the Tripoli airport in Libya and US President Donald Trump said he would designate Iran’s Revolutionary Guard a terrorist group, escalating tensions in two of the world’s biggest producers.
US benchmark crude, meanwhile, shot past price thresholds watched closely by technical traders, who use charts to try to predict when a big move is imminent.
“The expectation that the tightened supply picture is going to boost prices is starting to attract length into the market,†said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.
Crude prices have continued to climb after their strongest quarter in almost a decade as the Organization of Petroleum Exporting Countries and its allies curb output while economic and political crises squeeze supplies in Venezuela and Iran.