Oil Prices Futures

Oil Prices Futures and Gold are often thought of as defacto currencies preferred to the US dollar when the greenback sinks. As Oil and Gold are world commodities it is a natural behavior for the price of both commodities to rise in US dollar price terms when the US currency declines. When this occurs rarely do these two commodities increase in price against the resilient currencies which appreciate against the US dollar. As the US dollar appreciates against other currencies the price of Gold in US dollars declines. However oil prices futures do not always match the drop in gold prices when the US currency rebounds because often the rise in the greenback is due to an improvement in the US and world economies – which will stimulate demand for oil. In November last year oil prices futures rose as oil hit $100 per barrel for the first time in four months. After dipping to less than $76 per barrel early in October West Texas Intermediate prices increased by 30%.

oil_prices futures

Crude oil prices continue to outperform equities even though the two have moved together somewhat over the past few months.Oil has fallen back from the highs at the beginning of the year – along with Gold which has languished for the past few months. This is largely due to the turmoil in the European economies that now promote the US dollar.

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